Canadian banking haven myth exposed

Canadian banking haven myth exposed

"One of the reasons that Canadians (and international commentators, other finance ministers and global financial institutions) buy this Canadian banking fairy tale is the way the government accounts for the money borrowed to support the banks." The sorry spectacle of Conservat

Read More

Get rid of your mortgage, loans, because interest rates set to rise

Get rid of your mortgage, loans, because interest rates set to rise

Get rid of your loans, guys and gals, because we are going into a high interest rate period. Very high. It will be the equivalent of going into the double digit interest rates we had in the 80s where many people threw their house keys at the bank and we had record numbers of ba

Read More

E-cigarettes save lives, money

E-cigarettes save lives, money

"We know that cigarettes have thousands of chemicals in them and we know that they are killing us. They have been for over a hundred years. So now, the e-cig industry comes along with only one or two chemicals in their mixture and people are freaking out over these as well. Whe

Read More

US inches closer to big bank charges

US inches closer to big bank charges

Federal prosecutors are nearing criminal charges against some of the world’s biggest banks, according to lawyers briefed on the matter, a development that could produce the first guilty plea from a major bank in more than two decades. In doing so, prosecutors are confronting

Read More

Canada’s home sales top predictions; why a real estate crash is inevitable

Canada’s home sales top predictions; why a real estate crash is inevitable

“The assurance of relatively low borrowing costs has likely given home buyers confidence while rising home values have kept new listings at a healthy level. Stable employment has provided some assurance to owners and buyers alike.” Our website is back after many months of

Read More

Comparing today’s recession/depression to the 1980 recession

Comparing today's recession/depression to the 1980 recession

"Much like today, Americans were concerned not only with high unemployment but increasing budget deficits in the early 1980s. A September 1983 Gallup poll found that three-fourths of the public agreed that the federal government's budget deficit was a great threat (42%) or some

Read More

Why savers are getting screwed

Why savers are getting screwed

"Without the intervention of economic policymakers, interest rates would be naturally higher. That would increase the cost of borrowing for businesses and consumers, but there would be some offsetting economic benefits. Savers are getting screwed by the current monetary policy

Read More

Geithner admits USA bankrupt to US Senate

Geithner admits USA bankrupt to US Senate

"Never in our history has Congress failed to increase the debt limit when necessary. Failure to raise the limit would precipitate a default by the United States. Default would effectively impose a significant and long-lasting tax on all Americans and all American businesses

Read More

World economies on verge of currency revaluations to deal with debt

World economies on verge of currency revaluations to deal with debt

"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." -- Henry Ford Basically what the world central banks are doing is increasing their money by devaluin

Read More

Is Obama the next Mugabe of Zimbabwe?

Is Obama the next Mugabe of Zimbabwe?

"America, Britain, Japan, Germany, France, Sweden, Holland, Norway, Canada and Australia make up the Fishmongers Group and their meeting on Tuesday will deliberate on the state of the inclusive government, debt relief, public finance administration and the controversial economi

Read More

US raiding foreign countries with dollars, not soldiers

US raiding foreign countries with dollars, not soldiers

""The United States is going to China and saying: we want you to commit economic suicide, just like Japan did. We want you to follow the same thing: we want you to revalue your currency, we want you to squeeze your companies, we want you to go bankrupt,” says Michael Hudson,

Read More

FDIC wants your retirement cash to save banks: Bloomberg

FDIC wants your retirement cash to save banks: Bloomberg

“The FDIC is constantly looking at structures where we can get the greatest opportunity to tap into capital that we have not had the success reaching through previous disposition methods,” FDIC spokeswoman Michele Heller said in an e-mailed statement. “We welcome and work

Read More

Content By: The Coming Depression Editorial Staff (dates cited below)
Copyright: include link to this article on top of reproduction if you use it.
Bookmark and Share
(No Ratings Yet)
Loading ... Loading ...

detroit ghetto

“Why am I competing against a bank?” — Wallace, Detroit Resident.

Detroit’s problems are easy to identify. It was the first “white flight” that had to do with the integration of school districts. This has led those who could afford to leave it outside the city limits or in private schools. Communities have continued to spread further that pushed the majority of the population more and more out of the city. It began at 8 mile rd in the 1970s and is now about 26th mile.

As more than half the population to leave the outskirts of the city you’ve had a massive reduction in manufacturing jobs caused mainly by slave labor countries like China, bad management practices, and bad management practices of the Big three automotive manufacturers. The main problem that cannot be stressed enough is the offshoring of America’s manufacturing capability from the 53 percent of the percentage of the economy in 1965 to the less than 10 per cent we have now. Essentially Detroit became the epitome of the term “de-industrialization.”

Finally, you have a city that refuses to realize he has lost most of its population and cannot continue to offer the same services as before. One can not overstate how much money is wasted by the city every day by the utilities. DPW (Detroit Public Works) drive cars all day without real purpose. The list goes on and on. The problem has gotten so bad that the city has reverted to privatizing public corporations and agencies to private management companies which has been detailed on this site in the past.

Detroit house auction flops for urban wasteland
Story provided by ForexYard

DETROIT, Oct 25 (Reuters) – In a crowded ballroom next to a bankrupt casino, what remains of the Detroit property market was being picked over by speculators and mostly discarded.

After five hours of calling out a drumbeat of “no bid” for properties listed in an auction book as thick as a city phone directory, the energy of the county auctioneer began to flag.

“OK,” he said. “We only have 300 more pages to go.”

There was tired laughter from investors ready to roll the dice on a city that has become a symbol of the collapse of the U.S. auto industry, pressures on the industrial middle-class and intractable problems for the urban poor.

On the auction block in Detroit: almost 9,000 homes and lots in various states of abandonment and decay from the tidy owner-occupied to the burned-out shell claimed by squatters.

snippet

The stakes in the debate are rising.

The number of Detroit properties in tax foreclosure has more than tripled since 2007 and seems certain to rise further. The lots for sale last week represented arrears from only 2006, well before the worst of the downturn for U.S. automakers.

“We have to keep in mind that GM and Chrysler filed for bankruptcy this year,” said Terrance Keith, chief deputy treasurer of Wayne County. “Some people are going to be totally tapped out next year.”

Detroit, already stuck with a $300 million budget deficit, is responsible in the meantime for cutting the weeds and responding to fire calls for thousands more abandoned lots.

snippet

Wallace, 27, said he did not want to leave his fiancee and two children with a mortgage before shipping out to Iraq later this year.

“I still have student loans and I’m trying to be responsible. I don’t want to leave debt,” he said.

Wallace waited for the auction to roll around to Detroit’s Boston-Edison district, a once stately area that was home to boxing legend Joe Louis and Motown founder Berry Gordy.

But he was quickly outbid. An unidentified investor at the front of the room who had scooped up several dozen properties took the home Wallace wanted for about $15,000.

“Why am I competing against a bank?” he said later. “It would be common sense to have a separate process for people who want to move back to the city or it’s going to stay empty.”



The Bamboozled Generation

By PushingHamburger

Are you being stimulated into poverty?

Today’s generation has been so well inundated with lies from an out of control government that they can no longer tell which is up or which is down.

They no longer have the slightest idea of what it was to be a middle class family. They are far removed from the truth that not too long ago their parents lived in a more gentile time, a time when dad worked, mom took care of the home and children, there was job security, some money in the bank and the future for their children was to live in a world that was even better than theirs.

They have been bamboozled into accepting that it’s OK for their children to grow up without the proper supervision of either parent, its OK to be hopelessly ensnarled in credit card debt, it’s OK to live from paycheck to paycheck, it’s OK to live under the constant job insecurity, it’s OK etc. etc.

Here is a perfect example of what a secure job and the money earned was like in your parents time.

A middle class single earner family with an income of $150.00 a week lived in a fair sized home ( over 2,000 sq. feet ) That cost under $10,000 with a mortgage of $90.00 or less. That included interest, amortization, taxes and insurance. Percentage wise ( the proper way to evaluate then and today ) that consumed approximately 15% of income.

Today the average couple is struggling with mortgages that are consuming 50% or more of their income. The above example can be extended to the cost of feeding a family, medical expenses, transportation, college costs, taxes and every other aspect of family life. So why hasn’t this bamboozled generation fought back and taken this entrapment seriously?

It’s the fairy tale syndrome. They just can’t comprehend what was and what has been denied to them.

Related posts:

  1. Detroit’s mayor wants to “shrink” the city“If we don’t do it, you know this whole city is going to go down. I’m hopeful people will understand that,” Bing said. “If we can incentivize some of those...
  2. Tent City New York City: Future of USARussia Today interviews unemployed homeless people in a tent city a little bit off the beaten track of New York City as the city itself struggles with double-digit unemployment. So...
  3. CIT Group files for bankruptcy protection; Commercial properties collapse coming“The American consumer will no longer be able to serve as the motor for the world economy,” said Soros, 79. One reader wrote in: What if the financial system itself...
  4. US Homeowners: Sell your home now!A year from now you won’t be able to sell your house. Yes, you read that right. The caveat is (there always is a caveat) that if you have enough...
  5. Urban farming takes root in DetroitBy Matthew Wells BBC News, Detroit Could growing fresh vegetables help save crumbling inner cities around the world and tackle hunger? Putting in the spade-work at one of the charity’s...
  6. US’ 2nd most dangerous city lays off half city workers; soup lines across nation appear“Camden City Council, as expected, voted Thursday to lay off almost 400 workers, half of them police officers and firefighters, to bridge a $26.5 million deficit. That’s about a quarter...

This entry was posted on Sunday, October 25th, 2009 at 11:55 pm and is filed under Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Leave a Comment

Please note: Comment moderation is enabled and may delay your comment. There is no need to resubmit your comment.


Under the 'fair use' rule of copyright law, an author may make limited use of another author's work without asking permission. Fair use is based on the belief that the public is entitled to freely use portions of copyrighted materials for purposes of commentary and criticism. The fair use privilege is perhaps the most significant limitation on a copyright owner's exclusive rights. "