So how are you feeling right now? Do you feel secure in your job, in your home and it's current value. If you listen to the popular media outlets you have to be at least concerned if not downright terrified.
I can't quite figure out how the media and the talking heads can say the economy is on the edge of disaster with GM and Ford and hundreds of other companies having record quarters and years in sales and profit. Oh my - unemployment is over 9% - if you look at the other side of that, employment is over 90%. When you consider that the number that is considered to be the unemployable is 5%, then really only about 4% of the employable people in this country don't have jobs. So over 90% have jobs, and about 4% don't, doesn't sound so bad does it?
Those companies, and their employees are prospering so where is the disconnect. I think it all comes down to housing. I'm told that there has never been an end to a recession without housing leading the way out. So why is housing lagging behind the recovery? Could it be the same culprits that started this mess - Fannie and Freddie and our Washington politicians? I just heard this morning that their lending is no longer sub-prime, it's not even just prime, it's now GOLDEN - with average credit ratings for their mortgages now over 7.8% since the start of the recession. Now no one wants sub-prime back again, it was a disaster directed by greedy and stupid politicians with the idea that everyone should be able to own a home even if they can't afford it.
But there are tens of thousands of people with credit scores in the seven hundreds that would love to and can afford to have a different home, but can't because they can't get a mortgage. That's insane, credit scores in the 700's used to be considered "good credit", those in the 600's were "questionable" and those below 600 were the ones with "poor" credit. Fannie and Freddie, and the politicians that direct them, changed all that when they got caught for being the cause of the financial meltdown.
Well in my opinion they've gone to far and I'm totally fed up with all of them. We need housing to start to rebound and the only way that is going to happen is if they go back to realistic credit requirements. If you agree, it's time to tell your Washington representatives, they'll all be in their home territory for the next month - go see them - email them - phone them - and please ask them to put the pressure on Fannie and Freddie to go back to reasonable, not easy, just reasonable credit requirements.
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