Gasoline, food, you know the drill. Prices up up and up.
And, worse – well, coming much worse – because suppliers and growers in the food industry are having to continue to raise prices as the price of fuel increases to run those tractors. You know this if you’ve been to the supermarket lately. Yesterday, we paid $3.40 for three pretty good sized onions. Onions? A buck apiece for onions? We ain’t seen nothin’ yet.
We strongly believe that reporting by DSNews is extremely valuable information for those with foreclosure or mortgage issues. In a recent article the intrepid Carrie Bay reported on new developments regarding HFA – grim news for homeowners. Read her entire article here.
Ms. Bay wrote:
”Although the nation is in the midst of an economic recovery, albeit a slow one, unemployment levels remain extremely elevated, and that – along with lower housing prices, diminished demand from homebuyers, and a large inventory of houses in foreclosure – is leading to an increase in defaults on housing finance agency (HFA) loans, according to the analysts at Standard & Poor’s (S&P). [Emphasis Added.]
”State HFAs issue tax-exempt bonds to finance loans for borrowers and first-time buyers purchasing a home at a reduced interest rate. A recent study by S&P has revealed that delinquent HFA loans have exceeded state averages for the first time since the agency began tracking loans in single-family bond programs in 2006. Valerie White, a senior director at S&P, describes the results as a “troubling trend for HFA loan performance.” During the third quarter of 2010, delinquencies for loans owned by HFAs increased to their highest level and performed worse than state loan portfolios.” [Emphasis Added.]
”For HFAs, the delinquency rate — the percentage of loans delinquent at least 60 days or in foreclosure — reached 7.12 percent. In 2006, the HFA delinquency rate was 3.14 percent. By comparison, among state portfolios of similar loans, the delinquency rate decreased in the third quarter of 2010 to 6.97 percent, down from 7.24 percent in the second quarter of last year.”
“In our view, the increase in HFA delinquencies is not surprising given the continued high unemployment rates,” S&P said in its report. “Until the job market improves, we believe that loans will continue to perform worse than their historical record. Based on Standard & Poor’s economic outlook, high delinquency could affect HFAs for a few more years.” [Emphasis Added.]
”Other housing finance agencies with delinquency rate among the five highest were in California, Georgia, Michigan, and New Jersey. However, Georgia and New Jersey’s rates were both lower than their state averages.”
Ken here. This is the main point: “Until the job market improves.” Well it’s not improving. It’s not going to improve despite recent Administration and even Congressional rah-rahs about creating more job. They are controlled by Wall Street. Wall Street is beholden to “financial engineering,” which got us in the mess we’re in. And they are continuing to do the same thing they’ve been doing. It will only get worse on the ground, where we live.
Mess? Well, it’s deeper than that. The entire world economic system is at extreme risk, once again. Why? The Fed is playing the same game that got us into the mess, and is creating fiat money again, QE2. That money has begun seeping into the U.S. economy and is great for sustaining insolvent banks, and a gamed stock market, even fueling the current U.S. Treasury Bubble, but, for consumers – what to do we get – price inflation.Print This Post