The latest data on home prices show that the downturn in the housing market is getting worse, rather than better, raising questions about consumers’ ability to keep propping up the economy. American consumers have taken a hit not just from falling home prices, but also rising energy prices and a wobbly stock market. A barrel of oil is almost $100 and gasoline price gouging for the November holidays has begun. Consumers are sick and tired of it. On top of that is a clear sign that home ownership does not guarantee equity or money in the bank.
If the current slide in home prices continues a problem in the credit card market is sure to follow. Manipulated into a bad scenario where bill collectors and foreclosure specialists will have jobs while others receive pink slips, consumers are going to default on everything. Why? New roadblocks from new bankruptcy laws, combined with the industry’s lust for binding arbitration. Economists teach that one job lost ripples to five other jobs.
When credit cards losses start to mount for banks such as HSBC the losses will come on top of subprime losses. India and the Philippines will start to look more attractive, thus more job losses will follow. It is basic profit and loss logic. Unfortunately the gap between “have’s and have-nots” continues to widen. Like the dot-com bubble and so many others, history taught us that a pizza delivery driver (formerly a mortgage broker or customer service rep) cannot support a family on those wages. Unfortunately this time we have gasoline prices to contend with too.
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[...] Downturn in housing market getting worse The latest data on home prices show that the downturn in the housing market is getting worse, rather than better, raising questions about consumers’ ability to keep propping up the economy. American consumers have taken a hit not just from falling home prices, but also rising energy prices and… [...]
[...] research wrote an interesting post today on Downturn in housing market getting worseHere’s a quick excerptDownturn in housing market getting worse The latest data on home prices show that the downturn in the housing market is getting worse, rather than better, raising questions about consumers’ ability to keep propping up the economy. American consumers have taken a hit not just from falling home prices, but also rising energy prices and… Read the full post from Household HSBC Watch Tags: 2007 HSBC via Blogdigger blog search for basic marketing research. [...]
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Yes, if you fall behind on your bills, your creditors will most certainly continue attempts to collect what\’s owed, and one or more of those creditors might sue you in civil court. This happens less frequently than most people think, especially when…
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