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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (89484)	10/31/2008 6:36:49 AM
From: John McCarthy	Read Replies (4) \| Respond to of 116555

Nevada, Michigan, Florida lead 'underwater' list Friday October 31, 2:24 am ET By Alan Zibel, AP Real Estate Writer 6 states account for almost 60 percent of homeowners with mortgages higher than homes' value Here's a shocker: almost half of Nevada homeowners with a mortgage owe more to the bank than their homes are worth. Here's another: If you add in the homeowners like them in California, Arizona, Florida, Georgia and Michigan, together they account for nearly 60 percent of all homeowners who are "underwater" on their mortgages. Nationwide, almost one out of every five homeowners with a mortgage owes more to their lender than their properties are worth. But if you subtract those states, the rate drops to about one in 10, according to a report released Friday by First American CoreLogic. more biz.yahoo.com 10-29) 04:00 PDT Sacramento - -- California could face a $10 billion budget shortfall this year, far worse than the deficit projected only three weeks ago, officials from Gov. Arnold Schwarzenegger's office warned education leaders on Tuesday, according to several schools representatives. sfgate.com 10-17) 18:12 PDT SAN FRANCISCO -- California employers cut 11,600 nonfarm jobs in September and the unemployment rate held steady at 7.7 percent, the state Employment Development Department reported Friday. sfgate.com

To: mishedlo who wrote (89484)	10/31/2008 7:11:57 AM
From: Dan3	Respond to of 116555

Re: The problem with lending it out is they will once again be in a horrid position with reserves as credit card defaults and foreclosures rise. They cannot lend it out as you suggest. Yes! However unpalatable it may be to many, they only thing that will unwind this mess is to put non-loaned funds into the hands of current debtors. To do it fairly, funds should be given to non-crooks and non-idiots, too. To get the economy going again, half of it should go to small and large businesses. A retroactive FICA tax holiday, combined with valid interest rates (Fed rate ~5%, usury laws limiting CC card rates to around 12%) would do this and would fix the economic problem we face, today.