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Recession or...Posted Wednesday, April 9, 2008, at 10:13 AM
For some time now signs of the current economic situation have been staring at us, but right now, at least in my humble opinion, things look pretty bleak.
I guess first I should mention that my understanding and grasp on economics is quite limited, but regardless I think it needs to be discussed.
Former Fed Chairman Alan Greenspan came out today and said that the country is in deed in a recession.
While to those of us here in the real world, it hasn't been a secret for some time, people of his stature are very leery of words like that and they don't use them unless things are indeed serious.
Someone very close to me, I won't name them because the situation might embarrass them, is fixing to join the crowd of several million others and lose his home.
He works in new home construction and five years ago during the housing boom was doing really well. Interest rates were low and there was more work than there were hours in the day.
He and his family purchased a 3 bedroom home at a remarkably low interest rate from one of these mortgage companies that began popping up around that time.
Over the past five years interest rates have risen, slowing the housing market and in turn slowing work for several industries.
As interest rates rose, his monthly mortgage payment has continued to increase while the amount of work and income has dropped dramatically.
A 30-percent mortgage increase combined with 40-percent less income is a recipe for total disaster.
After spending the last year selling off personal belongings and family treasures, he's finally reached the conclusion that he's reached the end.
He's decided that foreclosure is the only option. The past year been hard, not only on the pocketbook, but on the family, too. They've just decided it isn't worth it anymore.
I just wanted to share this story because I thought maybe some of you had a similar one. You just never know when it could be you.
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Corey Noles, staff writer for The Daily Statesman and Editor of The North Stoddard Countian, is the author of a regular baseball/St. Louis Cardinals column and also uses his blog to sound off on various happenings in sports. He also operates a weekly baseball mailbag column.
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