NY Times: In Central Valley (CA), the Ruins of the Housing Bust

[marmar]

In Central Valley, the Ruins of the Housing Bust

By DAVID STREITFELD
Published: August 23, 2008


MERCED, Calif. - ELLIE WOOTEN, the likable mayor of this likable Central Valley city, is on her way to the office when her cellphone rings. A constituent wants her mortgage payments reduced, and is hoping that the mayor has some clout with her lender.

Although Merced has one of the highest foreclosure rates in the country, this borrower isn’t in such dire straits. She’s not even behind on her mortgage. But her oldest daughter is turning 18, which means an end to $500 a month in child support. She just wants a better deal.

The mayor hangs up and shrugs: “It’s a surprise her daughter is turning 18? You’d think she could have planned ahead.”

But hardly anyone in Merced planned very far ahead.

Not the city, which enthusiastically approved the creation of dozens of new neighborhoods without pausing to wonder if it could absorb the growth.

Certainly not the developers. They built 4,397 new homes in those neighborhoods, some costing half a million dollars, without asking who in a city of only 80,000 could afford to buy them all. ............(more)

The complete piece is at: http://www.nytimes.com/2008/08/24/business/24house.html?src=linkedin

[grannie4peace]

1. great post!!!!

shows the corruption all around -- every time bush mentioned all the new homeowners over his 8 years i worried. HE'S A F*CKWAD!!!!!
edit----we need to handcuff this to the pugs also