| Pub Date: 5/27/2008 11:32:00 AM | | | Now a days everything is being blamed on the housing market. Retail sales are down, crime rates are increasing, the job market is weak. All these are common comments we hear every day on the news and on the street. And yes, we can blame all these things and more on the terrible real estate market, but the at the end of the day the financial markets are the primary cause for the economy's status.
In my opinion our current financial situation is the result of years of bad loan practices. Money has been lent to a lot of people that did not qualify for it. This practice created an increase in demand for homes, raised selling prices and with the easy access to equity lines of credit, it gave people a lot of cash to spend on retail sales, create new jobs and businesses and to expand the economy overall.
Now that the party is over and values are decreasing, lending practices are tight and people are spending a lot less, companies are cutting jobs and the economy is contracting people are blaming the real estate market for everything when in reality the financial institutions and the government are the ones to blame.
| |  | | Subscribe to this blog |
|