Tauraso Medical Clinic
Home
Environmental Medicine
Target Ailments
Nutritional Related Diseases
Contact Us
Directions to Clinic
Office Practices
Dr. Tauraso's Curriculum Vitae
Dietary Supplements
Adjunctive Healing Modalities
Treatment Modalities
Dr. Tauraso's Blog
Dr. Tauraso's Medical Updates
Order Online

 

 

Welcome

Saturday, September 20, 2008

REASONS FOR BAD LOANS CONTRIBUTING TO THE SO-CALLED HOUSING DEBACLE

REASONS FOR BAD LOANS CONTRIBUTING TO THE SO-CALLED HOUSING DEBACLE

I have been watching the pundits on TV and also the politicians recently discussing the reasons why the home loan market is collapsing. Many are blaming: 1. The people who sold sub-prime loans to unsuspecting individuals who could not afford them. 2. Thee banks who bought these loans and created fancy financial instruments and created schemes to buy and sell these instruments using high margin and arbitrage beyond the recovery capabilities of what might happen if the housing values decreased even by a small amount. 3. The unsuspecting people who did not do their due diligence and read the fine print. And 3. The politicians who wished to insure that even the poorest in the community would be able to own their own home. All of these things are true and contribute to the so-called housing debacle.

I do not quarrel with these assessments, but I would like to add another explanation. Over the past 12 months, the number of unemployed persons has increased by 2.2 million and the unemployment rate has risen by 1.4 percentage points, with most of the increase occurring over the past four months. In August, 9.4 million Americans were unemployed.

There are many people who at one time could afford their homes but after losing their jobs cannot. So many families lost their major bread winner and could no longer afford the homes they bought and could afford when they were gainfully employed. These people are defaulting on their homes solely because they are not working. Losing one’s job is usually not the individual’s choice or fault.

I just would like to add a bit of sympathy into this equation. Sometimes bad things happen in the market place which are not anticipated, intended nor caused by those affected. Unfortunately, we live in a country where some want to find someone to blame when a bad event occurs. We get upset not realizing that sometimes things occur because it is the nature of the beast "mutatis mutandis."


nicola michael (c. Tauraso, M.D.)
Director, Tauraso Medical Clinic
Web site: www.drtauraso.com
Blog site: http://www.drtauraso.com/blog/index.htm
Email: drtauraso@drtauraso.com

Labels: ,

0 Comments:

Post a Comment

Subscribe to Post Comments [Atom]

Links to this post:

Create a Link

<< Home