ANOTHER Recession??????

And the whole world walked off a cliff…

Anyone else get the feeling the “experts” don’t have a clue how the economy actually works?

U.S. Economy Tipping into Recession

Early last week, ECRI notified clients that the U.S. economy is indeed tipping into a new recession. And there’s nothing that policy makers can do to head it off.

ECRI’s recession call isn’t based on just one or two leading indexes, but on dozens of specialized leading indexes, including the U.S. Long Leading Index, which was the first to turn down – before the Arab Spring and Japanese earthquake – to be followed by downturns in the Weekly Leading Index and other shorter-leading indexes. In fact, the most reliable forward-looking indicators are now collectively behaving as they did on the cusp of full-blown recessions, not “soft landings.”

Last year, amid the double-dip hysteria, we definitively ruled out an imminent recession based on leading indexes that began to turn up before QE2 was announced. Today, the key is that cyclical weakness is spreading widely from economic indicator to indicator in a telltale recessionary fashion.

Why should ECRI’s recession call be heeded? Perhaps because, as The Economist has noted, we’ve correctly called three recessions without any false alarms in-between. In contrast, most of those who’ve accurately predicted a recession or two have also been guilty of crying wolf – in 2010, 2005, 2003, 1998, 1995, or 1987.

A new recession isn’t simply a statistical event. It’s a vicious cycle that, once started, must run its course. Under certain circumstances, a drop in sales, for instance, lowers production, which results in declining employment and income, which in turn weakens sales further, all the while spreading like wildfire from industry to industry, region to region, and indicator to indicator. That’s what a recession is all about.

But how can we have a new recession just a couple of years after the last one officially ended? Isn’t this too short for an economic expansion?

More than three years ago, before the Lehman debacle, we were already warning of a longstanding pattern of slowing growth: at least since the 1970s, the pace of U.S. growth – especially in GDP and jobs – has been stair-stepping down in successive economic expansions. We expected this pattern to persist in the new economic expansion after the recession ended, and it certainly did. We also pointed out – months before the recession ended – that because the “Great Moderation” of business cycles (from about 1985 to 2007) was now history, the resulting combination of higher cyclical volatility and lower trend growth would virtually dictate an era of more frequent recessions.

So it comes as no surprise to us that, with the latest expansion only a couple of years old, we’re already facing a new recession. Actually, such short expansions are hardly unheard of. From 1799 to 1929, nearly 90% of U.S. expansions lasted three years or less, as did two of the three expansions between 1970 and 1981. In other words, such short expansions are unusual only with respect to recent decades…

“A Sugar Coated Satan Sandwich”

Hopefully, they will shoot this bill down today…

Debt Deal Emerging With Rightward Tilt

President Barack Obama’s rightward lurch to reach a $3 trillion deficit reduction deal with no guarantee of additional revenues had liberals fuming and Republicans all but declaring victory Sunday afternoon.

Rep. Emanuel Cleaver, chairman of the Congressional Black Caucus, said early reports of the new deal appeared to be “a sugar-coated Satan sandwich.” The Missouri Democrat said the CBC hadn’t yet made a formal declaration that the group would oppose it, “but this is a shady bill.”

“This deal trades people’s livelihoods for the votes of a few unappeasable right-wing radicals, and I will not support it,” ripped Rep. Raúl Grijalva (D-Ariz.), co-chairman of the Congressional Progressive Caucus, before House Democrats had even been briefed. “The lesson today is that Republicans can hold their breath long enough to get what they want.”

The President Surrenders

For the deal itself, given the available information, is a disaster, and not just for President Obama and his party. It will damage an already depressed economy; it will probably make America’s long-run deficit problem worse, not better; and most important, by demonstrating that raw extortion works and carries no political cost, it will take America a long way down the road to banana-republic status.

Start with the economics. We currently have a deeply depressed economy. We will almost certainly continue to have a depressed economy all through next year. And we will probably have a depressed economy through 2013 as well, if not beyond.

The worst thing you can do in these circumstances is slash government spending, since that will depress the economy even further. Pay no attention to those who invoke the confidence fairy, claiming that tough action on the budget will reassure businesses and consumers, leading them to spend more. It doesn’t work that way, a fact confirmed by many studies of the historical record.

Indeed, slashing spending while the economy is depressed won’t even help the budget situation much, and might well make it worse. On one side, interest rates on federal borrowing are currently very low, so spending cuts now will do little to reduce future interest costs. On the other side, making the economy weaker now will also hurt its long-run prospects, which will in turn reduce future revenue. So those demanding spending cuts now are like medieval doctors who treated the sick by bleeding them, and thereby made them even sicker.

And then there are the reported terms of the deal, which amount to an abject surrender on the part of the president. First, there will be big spending cuts, with no increase in revenue. Then a panel will make recommendations for further deficit reduction — and if these recommendations aren’t accepted, there will be more spending cuts.

 

Take Back the Land

Recently departed Jazz Musician Gill Scott Heron’s seminal piece was a song called “Winter in America”. I think Gill Scott saw the destruction of the American Dream years before it reached the crisis point.

Something is really, really wrong here – and other than a few intrepid groups like “Take Back the Land” – there doesn’t seem to be anyone in power doing a damn thing about it.

The right wing in this country is spending a lot of time defending the banks, the major corporations, and the rich by foisting one Trojan Horse issue after another upon the public airwaves.

A $15 a year tax break isn’t going to save you from being foreclosed on your house.

Protesters ‘Liberate’ Foreclosed Homes

protesters foreclosuresWhen Virginia Henry bought her boarded-up and abandoned Rochester, N.Y., home in December 2007, she saw potential where others were blind to it. The house, a short sale, became her home to live in and care for, she said. She plopped down her $20,000 and filed her paperwork for a loan program that would pay the balance — $43,000 — to rehabilitate the property.

But what followed was a series of unanswered calls and letters to Bank of America, Henry says, eventually culminating in her arrest Friday for a charge of trespassing on her own front lawn. The arrest, like much of this story, is the source of a dispute. Henry asserts police officers shoved her to the ground during the arrest, police claim she fainted from the intense heat. She has a court date for the trespassing charge July 28.

The facts of the short sale are also at issue. The bank has told Henry that the short sale never closed and that the house at 5 Appleton St. — with all her worldly possessions trapped inside — is no longer hers. A Bank of America spokeswoman, Jumana Bauwens, said she would investigate the claims.

“This is my home,” Henry told AOL Real Estate in a phone interview after the arrest. “How can I be trespassing in my own home?”

Protesters Step In
Continue reading

Poverty in America Moves to the ‘Burbs

That stereotype of poverty being solely an inner city phenomenum just blew up – if it ever was really true at all. Seems there more “po'” folks in the ‘burbs than ever before. Indeed, there is now more poverty in the ‘burbs, than in urban areas.

What this means for the country is another harbinger of a disaster, brought on by disastrous legislative and economic policies. The modern poor include a lot of folks who pushed all the right buttons, and jumped all the right hurdles in life – working hard, getting an education…

Who are now jobless, and increasingly homeless.

A Modern Ghost Town

Poverty surging in U.S. suburbs

Poverty is rising all over the United States, but it is especially pronounced in the suburbs, which were once regarded as a haven from the ills of the inner cities.

According to the Center for American Progress (CAP), a progressive public policy research and advocacy organization, one-third of the nation’s poor now reside in the suburbs.

CAP explained that the last decade set in motion this shift in the map of poverty, but the recession exacerbated key economic trends that rapidly increased the growth rate of suburban poverty to more than double that of central cities.

According to data from the Brookings Institute, as of 2009, 13.7-million poor people lived in the suburbs, a 37 percent increase since 2000 (compared with a 26.5 percent growth for the nation as a whole). In fact, it is now estimated that the number of poor people living in suburbia exceeds the number in the inner cities by about 1.6-million.

For example, poverty in the suburbs surrounding Chicago has climbed by 50 percent between 2000 and 2009 (while, ironically, the city’s poverty rate actually declined by 0.9 percent). Continue reading

No Longer Just Jose on the Corner Anymore…

Competition at the curbside…

Pinched Workers Seek Out Day Labor

High Joblessness Forces More People From Desk Jobs to Curb-Side Hiring Sites; a Bank Teller Takes Up Housecleaning

The face of day labor appears to be changing, with more women, non-Latinos and former white-collar workers taking up manual labor.

Amid continued high joblessness, employers say they are seeing more workers at curbside hiring sites, or seeking work through less traditional routes such as Craigslist, who before the downturn might have had full-time jobs.

Many lost desk jobs in the hard-hit auto, construction and financial industries. Some see manual labor such as housecleaning or hauling debris, where people are hired and paid per diem, as the only way to survive when jobs in their prior fields have become scarce.

How Conservatives Killed The American Dream

Folks who have been reading my blog for a while know that it is my position that the most destructive force in America the last 50 years or so has been conservatism. Especially that brand of conservatism evinced since Raygun, which for all intents and purposes has gutted the American Economy and destroyed the American Dream.Republican intransigence, lunacy, and ignorance may well have doomed the US to a repeat of the Great Depression.

relativemobilityinternational.jpg

Upward Mobility. The US now lags much of Europe.

Source here.

Almost all of that precipitous fall has occurred, beginning on Raygun’s watch. Finally – a Republican ‘fesses up -

Reagan insider: ‘GOP destroyed U.S. economy’

Reagan Republican: the GOP should file for bankruptcy

Stockman rushes into the ring swinging like a boxer: “If there were such a thing as Chapter 11 for politicians, the Republican push to extend the unaffordable Bush tax cuts would amount to a bankruptcy filing. The nation’s public debt … will soon reach $18 trillion.” It screams “out for austerity and sacrifice.” But instead, the GOP insists “that the nation’s wealthiest taxpayers be spared even a three-percentage-point rate increase.”

In the past 40 years Republican ideology has gone from solid principles to hype and slogans. Stockman says: “Republicans used to believe that prosperity depended upon the regular balancing of accounts — in government, in international trade, on the ledgers of central banks and in the financial affairs of private households and businesses too.”

No more. Today there’s a “new catechism” that’s “little more than money printing and deficit finance, vulgar Keynesianism robed in the ideological vestments of the prosperous classes” making a mockery of GOP ideals. Worse, it has resulted in “serial financial bubbles and Wall Street depredations that have crippled our economy.” Yes, GOP ideals backfired, crippling our economy.

Stockman’s indictment warns that the Republican party’s “new policy doctrines have caused four great deformations of the national economy, and modern Republicans have turned a blind eye to each one:” Continue reading

America Joins the 3rd World

This looks like something I’ve seen in Haiti…

30,000 queue for housing assistance in Atlanta

Some 30,000 people lined up outside a local shopping centre in Atlanta, Georgia, on Wednesday in the hope of receiving public housing assistance. The authorities were unprepared for the throng, which was unruly at times. Amid sweltering conditions, 62 people were hurt and 20 needed hospital care. Only 455 rent assistance vouchers and 200 public housing spaces were on offer – while 13,000 applications were taken.

Some had lined up since Sunday for the possibility of discounted rent.

It was the first time in eight years that the housing authority in East Point, a municipality in south-west Atlanta, had accepted applications for public housing and rent subsidies, known as Section 8 vouchers. Authorities estimate it will be six months before any vacancies become available for the small number of successful applicants. Most of the 16 other local housing authorities in Atlanta have closed their waiting lists. But Section 8 vouchers are portable, so people flocked from across the city for a chance to receive housing aid.

Atlanta is an economically polarized city: it has the fastest growing number of millionaires in the US but also has the third-highest proportion of people living below 50% of the poverty line.

“People are desperate. They are really willing to do whatever it takes to get into housing,” James Fraser, a public housing expert at Vanderbilt University, told the BBC.

Welcome to America after 30 years of conservatism. One of the favorite stitch’s of a black conservative buckdancer from Atlanta is to berate the City of Detroit. The line goes that Liberalism and Unions killed manufacturing in the North, as companies sought lower wage Continue reading

The Looming Depression – China Meltdown

China’s economic miracle has come with a number of costs. They have largely financed the US economy as a methodology to drive exports extending over $2 trillion in credit to the US to keep economic growth going.

The issue is that despite having 1.2 billion people – less of 10% of China’s manufacturing output is meant for the domestic market. Many of the products are beyond the means of the average worker. This has meant a massive slowdown as the US economy has imploded.

Interestingly enough, just as the US Government has tried to stem the tide with economic stimulus money, and has the ability to not only control the flow of money, but the lending practices of the banks – this has resulted in a massive real estate bubble instead of real economic growth. The precursor to a China meltdown will likely be the implosion of it’s overheated real estate market. There is a ton of inventory on the market, yet prices are still rising – as our own meltdown proves, that is not sustainable forever.

A second hit is going to be the movement of manufacturing back into the US, as both the US Government and increasingly restive public apply serious pressure to industrial and manufacturing companies to help in lowering unemployment. This could also have serious repercussions on the economy of India.

China: the coming costs of a superbubble

The world looks at China with envy. China’s economy grew 8.7 percent last year, while the world economy contracted by 2.2 percent. It seems that Chinese “Confucian capitalism” – a market economy powered by 1.3 billion people and guided by an authoritarian regime that can pull levers at will – is superior to our touchy-feely democracy and capitalism. But the grass on China’s side of the fence is not as green as it appears.

In fact, China’s defiance of the global recession is not a miracle – it’s a superbubble. When it deflates, it will spell big trouble for all of us.

To understand the Chinese economy, consider three distinct periods: “Late-stage growth obesity” (the decade prior to 2008); “You lie!” (the time of the financial crisis); and finally,  “Steroids ’R’ Us” (from the end of the financial crisis to today). Continue reading

A New Labor Movement to Roil The US?

American Labor has been comatose since Ronald Raygun fired the Air Traffic Controllers in 1983. However, the US economy has a greater gap in income and wealth since the time of the Robber Barons of the  last century, when Labor took to the streets and rocked the country.

Perhaps we are seeing the seeds of another great Labor uprising, putting middle class America back on their feet.

Our country tends to g in idelogical swings from the left to right and back every 40 years – I think the kickback against conservatism may be bigger, and more serious than even Liberals suspect – IF Progressives can define and enunciate the issues around the right wing noise machine. I think those of the generational poor due to color, and the middle class may indeed find common ground…

At which point there is going to be hell to pay.

Hat Tip to Truthout, for another insightful piece.

United by Hard Times: Workers Organize Across Race Lines

by: Carlos Jimenez  |  YES Magazine

The Lawrence textile strike (1912), with soldiers surrounding peaceful demonstrators

I’m feeling relieved. For a while it seemed like the historic election of our first African American president would give legitimacy to the idea that we live in a “post-racial” America. The idea that race is no longer a part of people’s daily experience is not merely false. It’s potentially dangerous when a majority of people are struggling to understand what’s happening to them economically.

What people are experiencing is exactly what’s supposed to happen to them under capitalism and its current variant, neoliberalism. That economic system is grounded on the idea that society must have winners and losers. It has convinced people that those categories are based on race: that people of color are, in the natural course of things, losers; and that white people, regardless of class, are supposed to win.

When hard times hit, as they have recently, people who are losing their grip on their middle-class status—or those who were already poor and are getting poorer—look for someone to blame. They fall back on the official story: White people’s troubles are caused by people of color; the troubles of people of color who were born in this country are caused by immigrants. It’s a divide-and-conquer strategy that keeps people who are natural allies on a class basis from looking at who’s really causing their trouble: the people who run the capitalist system.

This moment presents both a challenge and an opportunity. The challenge is to get people with shared economic interests working together—to get them past learned racial divides. As long as poor and working-class white people remain convinced that they win by keeping people of color on the margins, all workers will continue to lose economic ground. The opportunity is to use this economic crash as a way to find common ground among those who are the real losers—regardless of race—in the existing system…

The rest is here.

Moving Forward, Together

Despite the constant use of race as a wedge, and perhaps as a result of it, young people today are turning away from old racial divides and leading the way in creating a multicultural America. Data from a 2003 Gallup Poll showed that 82 percent of white 18- to 25-year-olds disagreed with the idea that they “don’t have much in common with people of other races.”

Spaces like the US Social Forum (USSF) in Detroit serve as opportunities to advance the discussion of building alliances based on class rather than race. The USSF expects more than 25,000 progressive activists and organizers to come together to share their work in areas as diverse as education, stopping the criminalization and incarceration of youth, bringing an end to unjust wars, bargaining collectively for better wages and benefits, attaining reproductive justice, and protecting the environment and Earth’s well-being.

But the overarching theme of the USSF is how we can build a larger movement that addresses not just racism, but the many structures that are impeding people from pursuing life, liberty, and the pursuit of happiness.

Working people of all races are looking for movements or vehicles through which they can express their self-interest. We cannot allow the right wing and corporate elite to co-opt the anger that is out there, as they have with the “Tea Party” movement and the growing resentment against immigrant workers. Progressives can change the direction of our country for the better by helping working people join together, regardless of race, to be their own champions.

Moving Forward, Together

Despite the constant use of race as a wedge, and perhaps as a result of it, young people today are turning away from old racial divides and leading the way in creating a multicultural America. Data from a 2003 Gallup Poll showed that 82 percent of white 18- to 25-year-olds disagreed with the idea that they “don’t have much in common with people of other races.”

Spaces like the US Social Forum (USSF) in Detroit serve as opportunities to advance the discussion of building alliances based on class rather than race. The USSF expects more than 25,000 progressive activists and organizers to come together to share their work in areas as diverse as education, stopping the criminalization and incarceration of youth, bringing an end to unjust wars, bargaining collectively for better wages and benefits, attaining reproductive justice, and protecting the environment and Earth’s well-being.

But the overarching theme of the USSF is how we can build a larger movement that addresses not just racism, but the many structures that are impeding people from pursuing life, liberty, and the pursuit of happiness.

Working people of all races are looking for movements or vehicles through which they can express their self-interest. We cannot allow the right wing and corporate elite to co-opt the anger that is out there, as they have with the “Tea Party” movement and the growing resentment against immigrant workers. Progressives can change the direction of our country for the better by helping working people join together, regardless of race, to be their own champions.

A Christmas Song – For These Hard Times

Found this one on YouTube. This young man has quite a voice. Check out what he says at the end in terms of what the song means to him -

Impact Of Recession 1/2 US Children on Food Stamps

 

food_stamps

More Americans on Food Stamps

CHICAGO — Nearly half of all U.S. children and 90 percent of black youngsters will be on food stamps at some point during childhood, and fallout from the current recession could push those numbers even higher, researchers say.

The estimate comes from an analysis of 30 years of national data, and it bolsters other recent evidence on the pervasiveness of youngsters at economic risk. It suggests that almost everyone knows a family who has received food stamps, or will in the future, said lead author Mark Rank, a sociologist at Washington University in St. Louis.

“Your neighbor may be using some of these programs but it’s not the kind of thing people want to talk about,” Rank said.

The analysis was released Monday in the November issue of Archives of Pediatrics and Adolescent Medicine. The authors say it’s a medical issue pediatricians need to be aware of because children on food stamps are at risk for malnutrition and other ills linked with poverty.

“This is a real danger sign that we as a society need to do a lot more to protect children,” Rank said.

Food stamps are a Department of Agriculture program for low-income individuals and families, covering most foods although not prepared hot foods or alcohol. For a family of four to be eligible, their annual take-home pay can’t exceed about $22,000.

According to a USDA report released last month, 28.4 million Americans received food stamps in an average month in 2008, and about half were younger than age 18. The average monthly benefit per household totaled $222.

Rank and Cornell University sociologist Thomas Hirschl studied data from a nationally representative survey of 4,800 American households interviewed annually from 1968 through 1997 by the University of Michigan. About 18,000 adults and children were involved.

Overall, about 49 percent of all children were on food stamps at some point by the age of 20, the analysis found. That includes 90 percent of black children and 37 percent of whites. The analysis didn’t include other ethnic groups.

The time span included typical economic ups and downs, including the early 1980s recession. That means similar portions of children now and in the future will live in families receiving food stamps, although ongoing economic turmoil may increase the numbers, Rank said.

An editorial in the medical journal agreed.

“The current recession is likely to generate for children in the United States the greatest level of material deprivation that we will see in our professional lifetimes,” Stanford pediatrician Dr. Paul Wise wrote.

Wise said the Archives study estimate is believable.

“I find it terribly sad, but not surprising,” Wise said.

James Weill, president of Food Research and Action Center, a Washington-based advocacy group, said the analysis underscores that “there are just very large numbers of people who rely on this program for a month, six months, a year.”

“What I hope comes out of this study is an understanding that food stamp beneficiaries aren’t them — they’re us,” Weill said.

I’m sure black conservatives will be jumping for joy over these numbers, in that the study predicts 90% of all black children will be on food stamps at some point during their childhood. That misses the point that the recession, and jobless recoveries from previous recessions have gutted our economy. Trillions of dollars to fight a unecessary war in Iraq, and not a freaking dime to put this country back on a firm economic foundation.

COngress needs to get moving, and quit dithering over Health Care Reform. There are a lot of other forest fires to fight, and it’s completely obvious by now that the Republicans put party purity far above doing anything which might help the country. So screw “bipartisanship” and drive the damn boat.

US recession forces Mexican migrants to return home – 25 Aug 09

Where did all the “illegal immigrants” go?

Back home, in the face of the recession, it seems. Folks up in arms about building those border fences…

Might want to install a few gates that swing towards Mexico.

more about “US recession forces Mexican migrants …“, posted with vodpod

Winter In America – the Recession’s Impact on Minorities

This is a discussion of how the “recession” has impacted the Minority communities.

Tough Times For Black American Small Businessmen

Yeah, I know… Times are tough all over. Never ceases to amaze me the dichotomy of “Home for Sale” signs, foreclosures, and boarded up houses and the folks walking out of the Mall with armloads of “bargains”.

Lobloly Pine Trees, Common to Tidewater Virginia

Lobloly Pine Trees, Common to Tidewater Virginia

Anyway, one of my Uncles on my Mother’s side was a lumber man. He owned his own portable mill, bought the land, planted the trees, and employed over a dozen men to cut, trim, load, and finish cut the timber before shipment. Some of his timber went to a pulp mill, to make paper.  Some went to make framing lumber, and some special runs went to a guy nearby who hand built wood luxury yachts cut as keel and rib strakes. I would go and visit with my Uncle, who lived in the southeastern part of Virginia several times a year, and as a small child have fond memories of the smell of fresh cut wood which seemed to follow him home from work.

So this story really sparked my interest, and the pictures aren’t much different than if they had been taken of my Uncle and his family.

Waiting for Work In the Silent Woods

CAMDEN, Ala. — Clarence “Sunnyman” Primm figures there are more than 70 people connected with the lumber industry in these parts who know how to reach him on his two-way radio. He loves the crackling sound of the thing. Because when a call comes in, when the buzzing pierces his blue shirt, when that scratchy human voice reaches out to him, it’s often a work order. And then Sunnyman circles his beefy arm in the air — as though he were twirling an invisible rodeo rope — and says, “Let’s go.” And he and his men are off, rolling through the thick woods of southwestern Alabama.
Sunnyman has known these woods since childhood, and he wants to keep clearing them.

“But the dang thing ain’t been ringing,” he says of his two-way, standing in the forest with his assembled crew of five men at the beginning of a workweek. Continue reading

Sub-Prime McMansions?

Back when the Sub-Prime crisis first hit, the Republicans sought to blame the crisis not on the financial incompetence of the banks, or the failure of the Federal Government to regulate the banking industry…

Price Reduced

Price Reduced

But poor (minority) folks who obviously took out loans they couldn’t afford.

Like damn near everything conservatives say – that was a lie, too!

LITTLE TORCH KEY, Fla. — Jack Warner leaned against his home bar and checked his watch before resuming his blank stare at the white tent outside his multimillion-dollar dream house, with its swimming pool and views of the Florida gulf, soon to be sold at auction.

“My whole life happens in two hours,” he said. “I feel like I am playing the part of Old Yeller,“ wondering if he will survive financially or perhaps just be put out of his misery, like the fictional dog. An auction, and having people traipse through a house in previews before bidding, smacks of desperation. But increasingly, people with multimillion-dollar homes who need to raise money are discovering they have few alternatives, as the luxury real estate market is especially moribund.

“We are seeing more people with homes that were on the market for $4 million to $7 million that are not selling and they are calling us,” said Jim Gall, president of Auction Company of America.

Mr. Warner, 61, bought his house and an adjacent property that once had a trailer park on Little Torch Key, north of Key West, in 1993. It was appraised at nearly $14 million just two years ago. But after losing a large amount of money, he liquidated his construction business in Elkhart, Ind. Last year, another company he owned, Lucky’s Landing, which essentially owned his Florida real estate, filed for bankruptcy protection and its assets came under court oversight.

When no buyer emerged at the listing price of $5.9 million, Mr. Warner asked the United States Bankruptcy Court in Miami to approve the property’s sale at auction. He had a lot riding on the request. To avoid personal bankruptcy, he said, the sale had to generate more than $3 million, roughly the remaining amount of the mortgages.

The gavel ultimately came down at $2.5 million. Mr. Warner’s hopes withered as he uttered softly: “O.K., I’m broke.”

Now obviously, the bankers and stock market guys who created this mess aren’t anywhere near selling their McMansions. Especially with the sort of $10 million bonuses still being handed out by Banks and investment firms to their 5,000 “most valuable” employees.

But a lot of others are being whipsawed by a failed economy, and a reduced need for the sort of services business which generates the sort of income to afford one of these monsters.

Has the market hit bottom? Probably for the low to mid market. Houses are beginning to move in the under $1 million range. However the McMansion market, which is vastly over built in many areas will likely continue to plummet.

Follow

Get every new post delivered to your Inbox.

Join 133 other followers