Wither Housing in America…10 years later. What is the future of housing in America after a socioeconomic catastrophe that swelled the ranks of the homeless and destitute by the tens of millions?It is safe to say that not only housing, but survival itself for most Americans will never be the same since the Mortgage Crisis. Entire neighborhoods were eviscerated and fully-occupied housing developments that contained hundreds of homes were reduced to ghost towns because of the inability to keep up with mortgage payments that in many cases were based in fraudulent lending practices.
Wither Housing in America…10 years later
The crisis that began in 2008 was just one battlefield in the so-called Great Recession, an economic downturn that began in 2008 and was outdone in severity only by the fabled Great Depression of the nineteen thirties. One of the root causes of the crisis was financial manipulation at certain altitudes in the financial, mortgage-lending and real estate sectors,
There was a massive propaganda campaign on the part of lindustry lobbyists to put every American in his or her own home, especially and including those who had been virtually barred from home ownership because of race or ethnicity. People who earned minimum wage were granted mortgages on homes that were priced at over half a million dollars, in many cases signing lengthy documents written in a language – English – that they barely understood. The terms and conditions of the loans were so vague, unclear and convoluted – to the point of being legally suspect – that they were referred to as “liar loans.”
The aftermath of this catastrophe may prove to be a permanent state of affairs, with the accelerated erosion of an American middle class that was already on shaky ground. During the free-spending, high-rolling days (daze?) that followed team Reagan-Bush’s decision to let the once mighty American manufacturing sector die on the proverbial vine led to the creation of a “casino economy” based on cronyism and irresponsible behavior in the area of high finance.
By the time globalism and the manic pace of digitization kicked in in the new century the American middle class had already seen its fortunes decline,. as had those at the bottom of the socio-economic ladder. By the time the Housing Crash had snowballed into something horrendous, million of American homes were in foreclosure and families everywhere in the United States were out on the street or shacking up with relatives.
…to be continued