Many of the newly poor come from the relentlessly rising ranks of the unemployed. In February alone, an average of 23,000 people a day lost their jobs. First they lose their jobs, then their health insurance, then their homes, often followed by collapse of the family unit. It is hard to pay child support when a person is homeless and unemployed.
By nature people want to do the “right thing”, which includes supporting one’s children. A feeling of helplessness often results.
Columnist David Ignatius said in the Washington Post, “There’s an ugly mood developing as people start looking for villains to blame for the economic mess.”
In November, an analysis published by the U.S. Army War College’s Strategic Studies Institute listed “unforeseen economic collapse” as one of the possible causes of future “widespread civil violence.”
Just under half of those surveyed in a poll by the Pew Research Center this month expressed anger about “bailing out banks and financial institutions that made poor decisions.” (The poll was taken before details became known of AIG’s bonuses to those who ran the company into the ground.)
While CEOs made 45 times as much as workers in 1973 they make more than 300 times as much today, according to Holly Sklar, author of “Raise the Floor, Wages and Policies that Work for All of US.”
American’s think financial regulators, and others tasked with protecting them, have failed miserably, in part because parties are too close. The Madoff scandal seemed to drive that point home.
Americans think lobbyists, political contributions, and back-room money speak louder than votes, complaints, and letters from anyone outside of Washington.
A larger number of adjustable rate liar loans due to reset in 2009 suggests that the government needs to find a solution to the first financial crisis before a second wave hits in late 2009 through 2011.
What the United States needs to prevent is a new round of “the newly poor.”
References:
(1) In American crisis, anger and guns,by Bernd Debusmann, Here
(2) Capmark under pressure after William F. Aldinger departure, Household – HSBC Watch, Here
(3) Subprime and college educations – an analogy worthy of investigation, Mortgage Blues, Here
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“A larger number of adjustable rate liar loans due to reset in 2009 suggests that the government needs to find a solution to the first financial crisis before a second wave hits in late 2009 through 2011.”
People should not have bought homes they could not afford. Since when does someone making $43k “deserve” a home worth over $200K?
Just curious.