Economic Disaster -- Are You Next? (Dissident Voice)

[autorank]

Time to think outside of the box.

Economic Disaster -- Are you next?

Michael Collins

The human costs of the U. S. financial crisis are coming into clear focus. Family members lose their jobs, then their homes, and the cascade of ruin begins in earnest. Health problems are ignored, anxiety and depression increase, and domestic violence is more common. Many are on the edge, anticipating their worst fears: losing their home or apartment then struggling to find the next meal. The biggest issues right now are about basic needs — food and shelter.

There’s a rational, reasonably immediate solution to a good part of the economic disaster. The banks won’t like it but you will. But first the sad facts.

There were 2.3 million default notices to homeowners in 2008, up 80% over 2007. It will be worse in 2009 with Option ARMs coming due (those favorites of Alan Greenspan).

Snip

To understand the full extent of the economic collapse, consider this. The current official unemployment rate is 7.2%. This includes those out of a job who have actively sought employment in the past four weeks. But this figure understates the level of economic distress. There are 1.9 million unemployed “marginally attached” workers not counted and 8.0 million underemployed workers seeking full time employment.

Snip

What happens when you’re thrown out of your home or apartment and you have no job?

To begin with, you’re poor.

More: http://www.dissidentvoice.org/2009/02/economic-disaster/

(N.B. This acknowledgment appeared in the other publications listed, somehow not at DV but check the link;

Thanks to those who provided feedback on cramdowns and to Susannah Pitt for her very helpful comments.

Also found here

[OKDem08]

1. Speaking from a personal perspective...

I see storm clouds on the horizon.

worried...


seriously...


just sayin'

[autorank]

5. We see it but

the rulers don't. They're rearranging deck chairs, imho. It's time to help people keep their homes.

3% forclosures in California
5% forclusures in Nevada
7.3% foreclosures in Florida

How much more reality do they need to see.

We've got plenty of resources but too many drags at the top. Hang in there.

[Hydra]

2. Welcome to Hell

They were kind enough to drive us there, and we were kind enough to shut up for the entire trip.

[truedelphi]

4. Well they only drove us there because they knew that we

Would not only get the bill for the drive, but for the chauffeur, and maybe for his next 40,000 billable hours, and for the purchase of a whole fleet of cars as well!

And we cannot complain about the bill, if the Dems are in charge of mailing us the bill payment coupon, right?

[Hydra]

7. Ever hear the story about campaigning in the afterlife?

http://epiac1216.wordpress.com/2008/04/18/joke-what-will-it-be-heaven-or-hell/

[Lost4words]

16. Look I am counting on the after life being free of polotics!

dont scare me like thaqt!

[autorank]

6. Very well said!

We need to flood the information superhighway with new ideas and a clear statement
that we're not going to let the banks get another rip off, no way, not now.

[MedfordTim]

3. Is it wrong for me...

...to wipe my forehead and say "Whew! Glad I'm on disability and am sure of my income source."

Never thought I'd be one of the "lucky" ones...

[autorank]

8. Welcome to DU

Your comment is a good contribution. I'm no judge, but why not say that? It's powerful.

[DemReadingDU]

13. How sure are we of anything?

The government is broke, over $10 trillion in debt. We can't pay for all this in our lifetime, it will be up to our children, grandchildren and great-grandchildren. It's that bad. What will the government end up doing? Raise taxes? Cut programs? Maybe both? Out of necessity, people/families will need to double up and share and help each other.

edit: spouse just filed for social security. He will get his, but I'm not so sure it will be around in a couple years for me.

and welcome!
:hi:

[CANDO]

47. Don't be so sure.

My stepdaughter, who teaches school, says they have been warned of possible pay reductions due to erosion of tax revenue. Disability comes from tax revenue. Gov't at every level is broke. There are no free meals in the end.

[napi21]

9. I've thought about thius a lot.. I'm personally lucky not to have fallen

into this problem. We are old, have a paid for house, and are both on SS, but what does someone do when they have a mtg. that they've been faithfully paying each month, and throug no fault of their own, the home values fall and they lose their job. They can't sell the house because they owe more than it's worth, they lose the hose so their credit is screwed so they can't get anybody to rent to them either. I honestly don't know what anyone in that situation could do!

I was born during the de[pression but I know very little about it. My mother told me about ration stamps and how grateful she was to the local butcher who used to sell her a few extra things because she had a little baby. I've always been quite frugal in my lifestyle because of growing up like that, but I worry so much about so many people who really tried to do the right thing, and thought they were, but are now facing the impossible.

[TahitiNut]

10. They do exactly what I did. They lose $120,000 in equity and are financially ruined.

Yes. It DOES happen.
The "Perfect Storm" isn't just brand new this last year.
It was hitting in isolated spots for many years ... and NOBODY FUCKING LISTENED.

[DemReadingDU]

12. A lot of people still aren't listening

They see and hear things, but nothing has affected them yet. They keep buying and charging all kinds of stuff. They will be stunned when it all falls apart.

[napi21]

15. I've been listening. But what did you do? Where did you go?

I hope I'm not getting too personal. That's not my intent, but I honestly don't know what I would do if my home was taken away, my credit was screwed and as far as I know, all landlords do a credit check before they will rent to you, so your screwed again! What did you do?????

[Why Syzygy]

17. Well..

Forum at DU: (Poverty)
http://www.democraticunderground.com/discuss/duboard.php?az=show_topics&forum=230

[TahitiNut]

20. Double disasters.

(I really don't like posting this stuff. But ...)

I got caught with a home in which I had $120,000 equity that disappeared - couldn't sell for even $130,000 less than I paid (which was at "market value"). Lost a job after 5 years (due primarily to whistle-blowing) - got $90K job in another location -- house sat on market -- rented in new location -- lost THAT job (it was a set-up which I won't go into) -- walked away from mortgage (defaulted) and house was taken. THEN .... stepfather died, mother hospitalized. Either I (her only child) moved 'home' to Michigan (that I'd left 30 years before) or mother (unable to live on her own) would have to go into assisted living, on Medicare then Medicaid as they took her home and meager assets. (The 'rules' are complicated, but essentially people who must live with assistance or skilled nursing have all their assets liquidated to pay - then they're on Medicaid.) So, I became a full-time (assisted living) caregiver 6 years ago ... with absolutely no assets left. No credit cards. No bank accounts. Nothing but bad debts. Unemployable. ("Overqualified" and credit disaster.) I survive personally on Social Security and a (very) small fixed (no COLA) pension. At some point, I'll have to go through Chapter 7 (if I can pay for it) if only to be prepared for my mother's death - and inheriting her small 1000 sq' house. It's a toss-up whether I could afford to continue living in it even then on such a small fixed income - property taxes, utilities, groceries, etc.

Bleak.

However ...

Happiness is something we do, not something we 'find.' (If I hadn't learned that lesson, I'd be dead.)

That ... is part of why I'm a "nut." ("Sane" people commit suicide.) :silly:

[DemReadingDU]

26. you have been thru much

and from what I read, is going to become the 'norm' for so many other people too. Not only are more people losing their jobs, income, health insurance, housing, but soon to be lost will be their pensions (if they have one) and 401(k)/IRA due to the impending collapse of all those toxic investments.

Think of this as a huge bubble we have been living in for the past 20-25 years, and all bubbles eventually burst down to the level where they started. The question is, did the bubble start with deregulation when the stock market was 4000, or back further when we got off the gold standard when stock market was only 1000. I don't know, other than we have a ways to go to the bottom. And it is going to get very bleak for a lot of people who were counting on income, and money not there nor savings. :(

But hey, if we look at it as a different way of living, not necessarily bad, we'll get thru. :)

And kudos for taking care of your mom. I know it is not easy, and very tiring. We sisters took turns helping our mom while she was sick. Since we all had busy lives and families, it was an opportunity for us to bond more closely as a family.

DU has become one of the places that I 'do' for happiness.

:hi:

[FedUpWithIt All]

38. ...

>>Happiness is something we do, not something we 'find.' (If I hadn't learned that lesson, I'd be dead.)<<

Nicely put.

:hug:

[MadMaddie]

41. I know it's hard to think about

but you need to make sure you have funeral insurance. My parents did not keep up my grandmothers funeral insurance and when she passed away my sister ended up having to put $8,000 on her credit card. If you can get a policy with a minimum of $10,000 you should be okay.

When companies started using credit reports for hiring new employees I always knew it was a bad thing.

[TahitiNut]

53. Maybe ... but she's made an "anatomical gift" to my alma mater.

My mother -- ever the child of the Great Depression -- is always (since I can ever remember) saying "that's too good to throw away." She sees food as a task - a duty - must be eaten - not as a resource. Leftovers ... must be eaten. Food in a restaurant that's more than she can eat ... must be eaten. She's told me to 'eat this' more times than I can count. Everything. Wrapping paper. Boxes. Vases. Kitsch. "That's too good to throw away."

I'm half inclined -- when she dies and I have to call the University Medical School -- to tattoo her body with "Too Good To Throw Away."

(Yeah ... graveyard humor.) :evilgrin:

[DemReadingDU]

11. It's going to be bad

Obama even says it is going to get lots worse before things get better.

Obama needs to get things in place, not only to fund jobs, but also he is going to need to get food and shelter to the people. Too many are already getting laid off, more and more will be unemployed soon. After that, the people will be losing homes and not have enough money to buy food to eat. Family and friends can help, for a while. The cramdown is a great idea, but I think this administration will procrastinate and will come too late to help most of the people.

[autorank]

18. Highly accurate

"...but I think this administration will procrastinate and will come too late to help most of the people."

That's a generic description that is quite accurate. They don't get it at all. It's is a huge
relief to have Bush and the criminal cartel gone. It means that people will be much more open
in their expression and that, at some point, demonstrations will not automatically mean a SWAT
team there to beat people up.

Obama needs to hear from us frequently and in no uncertain terms. It's deadly out here. Just
look at Florida at 7.3% foreclosures. That's stunning.

Thank you for the heads up earlier!

[DemReadingDU]

27. Florida, California, Michigan, Ohio

just some of the worst states, the rest will follow.

After 2 stolen elections and no oversight for 8 years, it's a relief to finally have Bush and his corrupted cronies gone. But such a mess they have left us in.

We are thankful to have Obama, a very intelligent person as our president, a great speaker, and a country supporting him. And with what's economically coming, he is going to need everyone behind him.

The Senators and Reps need to hurry and get this stimulus package passed so that we get people working. It's all about jobs! People need jobs for income to buy the necessities, food and shelter.

The banksters don't need any more bailouts, taking our hard earned tax money to fill up their wealthy pockets. Instead, the money should be used to bailout those who have troubled mortgages, a cramdown as you say.

I'm sure Obama has been told about the dire conditions upon our country, and that is why he is out there speaking to us. But the process takes so long. I am fearful that we are going to wake up someday, probably sooner rather than later, and we will find out that what we need, is still being debated upon by the Congress.

[Why Syzygy]

14. Take down the MSM . Lied with GW to march to war

Lies with Wall Street in march to poverty.

It's no good to petition DC.
In America, broadcast studios are our Parliament. That is where is strikes begin.
Protest CNBC/ABC in NY.

Naomi Klein: Public Revolt Builds Against Rip-off Rescue Plans for the Economy

By Naomi Klein, The Nation. Posted February 6, 2009.
http://www.alternet.org/story/125566?page=entire

from link:
The pattern is clear: governments that respond to a crisis created by free-market ideology with an acceleration of that same discredited agenda will not survive to tell the tale. As Italy's students have taken to shouting in the streets: "We won't pay for your crisis!"

Bill Moyers gets it:
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=4993524&mesg_id=4993524

Our great, humanitarian thinkers are BEGGING us.

[autorank]

31. We need to become part of their psyche

"Gee, what will the people do if we do _______?" instead of,
"Oh, the people are hungry, let them eat Garvey Train"

You're right, more immanence and presence more often by many more people.

[roamer65]

19. No one is "safe and secure" in this depression.

The gov't has no choice but to hyperinflate.

[Hannah Bell]

21. In an asset deflation, inflationary policy is not necessarily a bad thing.

If people have jobs.

[CaliforniaPeggy]

22. Thank you for this!

K&R

Scary shit, indeed.

[autorank]

46. Scary shit and totally unnecessary

I'm so tired of the avoidance I'm seeing from the pols.

[MagickMuffin]

23. Isn't it comforting to know Susan Collins wants to ELIMINATE FOOD STAMPS from the Stimulus Bill

Why oh why does she WANT people to go hungry?.?.?

Just as the Corporate fat cat cried "It's hard to live on $500,000 a year!" Clueless JERKS

How do you think he would manage on less than $25,000 a year?.?.?


I've been managing to live on less than the 25K. And believe me if I had extra income I would most certainly be spending to help to stimulate the economy.



My parents grew up in the depression and I heard their stories plenty of times how they survived by eating crackers, cornbread & red beans, and spam.


I used to help feed the homeless back in the 90's with the "Food Not Bombs" program. We would go to the Cowtown Co-OP and get whatever food was going to be thrown out (we made sure it was edible) and we would make soup for them. It was really interesting experience when the people wanted to know when we were going to preach to them. We let them know real fast that we didn't believe they should be preached to to receive food for their bellies. The one main reason I stopped was for health concerns since I haven't had insurance for many many years, and fearing I could contract a disease that I wouldn't be able to afford to treat.:scared:


I'm not sure if you're familiar with Guerilla gardeners, but they are located all over the world and they find abandoned lots and transform them into veggie gardens.


This group is out of London and it is turning into a global phenomenon,

http://www.guerrillagardening.org /

L.A.

http://www.laguerrillagardening.org /


More people need to get involved in programs like this.



Thanks for the excellent article.:hi:

[SpiralHawk]

24. Why do Republicons HATE American citizens?

Ya gotta wonder...

[MagickMuffin]

25. Because they LOVE Corporations Much MUCH MORE

We can't "GIVE" them the kickbacks the way Corporations can. We can't afford to "give" them $$$$ for their campaigns.

Corporations LOVE them because they can "give" them the BIG BUCKS and then write the "laws" for them to pass through congress.

They must have the itchiest backs in the world with all the back scratching that goes on between them.

[autorank]

29. Back scratching, back stabbing, back slaping

It's all par for the course. But overwhelming disapproval manifested in the streets and over the
information super highway will make a difference. They need to find out just how far out of touch they are.

:hi:

[MagickMuffin]

34. One of the main reasons they are trying so hard to attack the stimulus bill with regards to

Broadband and the Super Highway is for the sake of keeping their voters as the LIV in check. Those voters get the chance to learn how to think for themselves the jerkoffs will be in BIG trouble. As the LIV will finally have the tools to find out information for themselves and not have to rely on Sean Hammity, Lush Rimbaugh, and Bill O'Liely to spread their disinformation.

:hi:

[autorank]

44. Right, that's what happened with Iraq

No way the people changed their stance on the basis of corporate media. It had to be the internet
and alternate channels. People will think through things and make good decisions, for the most part,
if the forces of disinformation and prevarication are even on an even playing field with free thinkers.

[ihavenobias]

28. Good facts to have.

I came SO close to being laid off a couple of weeks ago, but managed to survive (with my hours cut). It's pretty bleak.

K & R

[autorank]

30. kick

:kick:

[KoKo]

32. SC is in terrible economic shape....Yet their Senators Jim DeMint & Lindsay Graham

seems to feel they speak for the voices of the people there. Both rail against giving anyone any help but thinks "tax breaks" for corporations and doing away with "entitlements" are the answer to everything. Repugs dumnbed down education so badly in the Southern States that the people of SC still think George Bush would have been successful if the Dems in Congress hadn't "obstructed" him.

How do we deal with the ignorance? A McCorporate media and fools like Rush Limbaugh have had the bully pulpit to spread their lies for almost two decades. How do we get those so ignorant as not to understand their own plight to suddenly awaken and see what has been done to them?

from the link:

"Michigan, Florida, Ohio, and South Carolina are facing hard times similar to those in California. Your state is next. It’s a nationwide phenomenon.

Despite hundreds of billions in giveaways to the banks, there are no reports of a single U.S. citizen or family receiving a bailout from Washington to help them stay in their home."

[DemReadingDU]

33. Cities and towns also are having budget crisis

It's not getting any better anywhere. Yet many people, spouse included, blindly feel that since the crisis has not yet affected them, so why worry?
:eyes:

[autorank]

37. I tuned in to C-Span and there was Graham

What a disgrace he is. One thing he said did make sense (from his viewpoint): "... nobody is blaming
anybody." Certainly not in the U.S. Senate and certainly not if you're the suddenly forgiving
Graham. Anathema!

I was surprised to see SC in such bad shape. They've done quite a bit to build up the state. But
everyone is getting hit by this sooner or not much later.

How about a real economic revolution starting in S.C. Not likely but you never know.

[KoKo]

40. Little South Carolina throughout American History is where "Things Start" ...Civil War

(shots from those Johnny Rebs at Fort Sumter) the Confederate Flag still flying over State Capitol in the late 90's, Religious Fundamentalism...Willing Ignorance to not teach your kids because you don't want to accept Fed Funds...and all kinds of weird stuff. Now their two Senators want to hold Obama Hostage.

When I grew up there Ernest Hollings was the Progressive! He was educated and forward thinking about Civil Rights. What that state has become is a cesspool of Fundie Illiterates. Georgia, Mississippi and Alabama are right in the race to the bottom with SC, though.

I don't recognize the place...but then I grew up in Charleston that went for OBAMA....but we don't have the power that the "Upstate" does...like we used to for votes. Better educated in Charleston but the foreign Auto Companies are Upstate along with Nuclear...so that's where the growth has been except for Real Estate on the Coast and that's in the crapper.

[autorank]

43. Hollings was terrific

I remember when he said he couldn't figure out why people weren't in the streets protesting.

Maybe they'll get hip to the new deal, which is no deal for them thanks to the fools that represent
the state. Graham is such an embarrassment, totally.

Charleston is one outstanding city. I was there when a very long drought broke and people
were half naked dancing in the streets, a bit of drinking too. Beautiful, fine food ...

[Hubert Flottz]

35. The GOP wasn't ever happy with FDR's new deal and the...

dreams of the American middle/working class.

Freedom, Liberty, Equality, Justice...Your Ass.

The GOP's twisted reoccurring American nightmare is back again.

http://www.youtube.com/watch?v=4F4yT0KAMyo&feature=related

The GOP has been busy undermining FDR for over half a century, now they have started to undermine Obama. Why do they want America to fail?

And then there's Dick Cheney...

Terrorism, –noun

1. the use of violence and threats to intimidate or coerce, esp. for political purposes.

2. the state of fear and submission produced by terrorism or terrorization.

3. a terroristic method of governing or of resisting a government.

http://dictionary.reference.com/browse/terrorism

[autorank]

36. They are what they hate

This is their economic stance, as lackeys to the uber wealthy.

It's also a superstition for people like Joe the Plumber who want to make sure they get to keep
all of their money if they ever strike it "rich."

Well, the universe has delivered a huge lesson to these people of the dollar bill:

money is meaningless in a system that is totally upside down with no way to repay the false
debt that the system still endorses. Their money is useless.

How much is enough? A nation where everybody does well.

How much is too much? A nation where those few who do well eat their own wealth by spectacular excess.

[Me.]

39. It's Time To Start Calling Everyone On Their BS

Threatening filibuster? Call them on it, make them do it. Don't just accept the threat make them put up or shut up.

[autorank]

42. Well

Unfortunately, this stimulus bill has nothing in it directly for homeowners. The bill is a major
change in how the government works for people vis a vis services and I commend that.

But what about the people?

The real estate bubble was a fraud. It create wealth that people were to believe according to
the grandees like Greenspan who literally said 'hey, get an ARM and invest in the stock market.'

Then the market crashes and the people, who drew their equity out, crashed with it. That was FRAUD.

The difference between current appraised values and FRAUDULENTLY inflated loan amounts a few years
ago represent ill gotten gains for the banks.

Divest the banks of their dirty profits. It's time for a national cramdown.

[Hubert Flottz]

49. "Divest the banks of their dirty profits"

Reverse republicanism = Rob from the rich and give to the poor for a change.

The Bankers have owned and operated the federal government since Woodrow Wilson was president. Woodrow Wilson signed into effect the Federal Reserve Act on December 23, 1913. About six years later Mr. Wilson said:

“I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world - no longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men.”
-President Woodrow Wilson

[Hubert Flottz]

50. New Enron/Warburg/Bush a conspiracy in the making!

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=104&topic_id=39503&mesg_id=39503

Paul Warburg

http://en.wikipedia.org/wiki/Paul_M._Warburg

[shadowknows69]

45. My wife and I are fucked like we've never been fucked before

And neither one of us are enjoying it.

[Tsiyu]

48. Most of us want to believe in a nation of laws

But the law has betrayed us.

I hope for strength for everyone and dread seeing riots in the streets.

But the riots may not come from inner city folks, it may come from the exurbs and the suburbs. And it WILL come when people grow hungry.

If the Repukes continue to turn away from what they've done, and the Dems continue to let them do it, they will see a revolt unlike any seen before. They fail to understand that what happens in our wars, when we push people to the brink of hunger, homelessness and poverty, is going to happen here if they don't stop this madness of Corporate Whoredom.

Hopeless people with nothng to lose are dangerous people. Look at Palestine, Iraq, Afghanistan. Look at the desperate acts. This is not about politics anymore. This is about survival.

It either gets better or the REpukes and enabling Dems are going to see a nation they don't recognize. No one will be safe, most certainly not the rich. Our troops and their mercenaries cannot control even a tiny country like Iraq. How will they control this huge nation when all are hungry?

People don't want to think that but I am telling you on the fringes here, where we probably already have 20-25% unemployment - people are hungry.

And growing restless.

[autorank]

52. You are so right about the suburbs

The last election was a mix of evicting Bush and electing Obama. I'd argue that the eviction
portion was greater by percentage but who knows.

However, the Democrats, all of them, have a short time frame to produce solutions. There is no
political allegiance that is superior to self interest when the policies of the rules fail to
provide the basics.

There will be huge discord. The Option Arms mentioned in the article are the trigger
for some of what you described so well.

Talk about restless: buy a home for $600,000 with a no interest arm; figure you'll surely be ready
to pay it back and refi at the end of the five years - but now it's worth $400,000 if you're lucky
and it will take months to sell ... tick-tock.

This is the middle class version of subprimes. And it's just starting this year for another 2-3
of maturing contracts. It will be very ugly. People will be ruined financially. And they're
not going to want to hear that they were "stupid."

Real solutions real quick should be the motto.

[autorank]

51. KICK

:kick: