Housing Crash Continues, Now Worse Than the Great Depression

The housing crash is not over by any means. Housing prices fell another 1.9% in the first quarter of this year. The decline has now reached 33%, that is, housing prices in the US have fallen by 33% since the start of the crash. The decline is now worse than the housing price decline that occurred in the Great Depression. It will continue, as 4.5 million households are 3 or more payments behind or in foreclosure.

A friend of mine was living near Atlanta recently. When she moved there, there was one foreclosed house in the area. Now, 2 years later, half the homes on the block are in foreclosure. It looks like while the foreclosure crisis is lessening here in California, it is still going gangbusters or  peaking in other parts of the country.

The housing crash was caused 100% by neoliberal economics, specifically the deregulation of the housing and financial sector. This was supported by both parties, it is true. The Republicans are lying and saying that the crash was caused by the government of too much regulation of the housing market. They also say it was caused by Barney Frank’s fag boyfriend. These are of course total lies, but you wonder how many rightwing fuckwads actually believe this BS?

The corporate controlled mass media has done its job and has totally lied to Americans about what caused the housing crisis. The rich and the corporations who control the media are the ones who destroyed the economy in the first place, but they are never going to let you know that. I would be amazed if your average American knows why this happened. The finance reform bill that Obama passed is very weak, even though the maniacal Republicans are screaming that it is “socialism.” The bill does nothing to prevent what caused the crash from happening again.

Obama has done little to help Americans save their homes from rapacious banksters. A bill that passed only helps less than 10% of Americans with troubled homes to keep their homes.

The Republican Party has been absolutely vicious on this issue, refusing to help homeowners even the tiniest bit and blaming the victim, like they always do, for being irresponsible in losing their homes. Do 45-50% of Americans really support this vicious mindset? That’s incredible, but I’m afraid it might be true.

It’s not the Republicans who are bad. It’s the fiercely reactionary American people are no good. The Republicans are simply an expression of the fanatical rightwing nature of the American people themselves. The party is expressing their will. Apparently, reactionary Americans love plutocracy and corporate dictatorship, want to destroy the US economy and want to zero out the government at all levels. Go figure!

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0 thoughts on “Housing Crash Continues, Now Worse Than the Great Depression”

  1. The financial industry is the most highly regulated industries in America. Possibly healthcare is the only industry that is more regulated.

    The housing/mortgage market was being manipulated by the Federal Reserve, HUD, Fannie Mae, Freddie Mac, FDIC, etc. The moral hazards they created led directly to the housing bubble and subsequent crash.

    1. You’re not allowed to post rightwing propaganda on this site, particularly about economics.

      Do it one more time and I ban you.

      You can stay on the site if you refrain from rightwing propaganda.

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