My Economic View

It has been a while since I have blogged so I need to start back.  I ignore talking about finances because it is a weakness I put under the rug.  I over spend and don't take care of every dollar I get.  But what is happening today on Wall Street and the capital is cracking me up.  Anyway, here is my take on this?  Many that will read this knows I spent 18 years selling real estate as a Realtor.  I was more of a consultant and one who would gather information than I am in sales.  If it was up to me, get what you need and don't wast my time.  Many of my colleagues would make it a challenge to see what they and how fast they can sell at the highest bid.  Sales and inventory of all product, buyers and sellers is key to all.  I was always looking for the easiest way there.  During my real estate career, in the late 90's and the beginning of the decade was an explosion in the market and how can this go wrong many would ask.  When I would see many and most applicants for home loans be approved and knowing they are way above their monthly payment limit.  I was told by the industry that was not my problem.  Bottom line:  the "Lending" industry handing out loans left and right to everyone and anyone and doing ANYTHING to make it happen.  To be approved the dept to income ratio including your home payment was 41% of the household monthly income.  the house payment could not be above 31% of your gross monthly household income.  Lenders would count bonuses, overtime, extra income as mowing lawns for your neighbor and so on.  All this kept going and going on till we are in this bursting bubble of 2% (which is billions) of homes are being foreclosed, many incomes have dropped, overtime and bonuses are non-existent in most companies.  But the Media and Washington is sitting there like how did this happen.  Where did we go wrong.   And these poor, poor lenders that are having to take back their loans.  There is enough blame to go around to all and I wont get in to the middle of that.  I do not believe a bailout of wall street and the lenders and of Fanniemae will be the answer.  I believe the answer needs to lie in each of us.  I live in a 1 bedroom home with two jobs and one car that I make payments on.  I have no cable, satellite or Internet.  i did splurge on an Apple iPhone that gives me all that and I am settled on regular air-broadcast tv.  I don't do magazines and newspapers and I am energy conservative when I can be.  So if everyone cuts back because we put ourselves in this deal, we can INDIVIDUALLY get out of this deal.  My point is, it just happen lets really look at what is important.  I owe a tone of past due bills of my irresponsible financial life.  They will get paid and getting close.  Once everyone takes responsible of their financial situations and work themselves out would be not an answer right now but I believe a start.  I'm working towards it.