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Foreclosures Forestalled
Home Foreclosures Spike Even as Economy Improves

Reports on the economy have been tinged with a modest note of optimism of late ever since U.S. job statistics picked up and unemployment dropped. As the New York Times put it recently, “Only days after many voters complained of worsening economic prospects, the new employment report from the government on Friday provided fresh evidence that the economy was actually getting better.” But underneath some of that good news, there’s some bad news, too—not only the decades-long trend towards wage stagnation, but the continued spate of home foreclosures.

On Friday the Washington Post reported that foreclosures related to the collapse of the housing bubble are up nationwide. In October, the rate of foreclosures went up 24 percent from September, which is also seven percent higher than the last year’s rate. Banks were temporarily held up in by various federal regulations from foreclosing on these homes after the recession hit in 2006, but no longer. More:

While there is no longer a deluge of foreclosures hobbling the housing market, the auctions that are underway are a reminder of the residual effects of the crisis. “The rise in foreclosure auctions indicates that the banks and the courts are preparing for a spring cleaning,” Blomquist said […]

Overall, foreclosure activity increased from a year ago in 10 of the nation’s 20 largest metro areas.

The crisis that created the Great Recession is over, but for many people the lingering effects are still putting a damper on their wealth and prospects. Good job numbers, however worthy of celebration they might be, can’t erase that fact.

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  • Jacksonian_Libertarian

    We are 6 years into Great Depression 2.0, the economy isn’t recovering, it’s bouncing along the bottom. Economies naturally go into Depressions when Debt levels reach a critical mass, very much like how traffic jams occur when the density of vehicles reaches a critical mass. You fight deflation with inflation that devalues the Debt that pushed the economy into deflation, and causes wages to rise making Debt easier to service. High foreclosure rates are a symptom of a deflationary depression, and wouldn’t be occurring in such high numbers if the economy was really recovering.

    • FriendlyGoat

      Are you suggesting the stock market is about to crash, or do you believe that deflationary depressions co-exist with wide-based market tops?

  • Corlyss

    And guess who the minorities blame for their being thrown out of the homes they couldn’t afford to buy in the first place! The banks. And guess who is pressuring the banks to loan to minorities who can’t afford to buy their homes in the first place! And guess who is waiting in the wings to pounce on the banks for doing what it told them to do!

    I swear, this drill is like Lucy and Charlie Brown’s annual football ritual. The law and this aggressively racist and redistributionist administration force banks to do what no prudent lender would do; nature takes its course; the minorities default and blame the banks for throwing them out of the homes they had no right to; and the government moves in to punish the banks.

    • FriendlyGoat

      Minorities like bowlers, Seventh-Day Adventists, artists, and veterans?

  • Boritz

    “The economy was actually getting better.”

    The economy has, in this political climate, an infinite capacity for getting better. Just don’t expect a good economy.

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