7/25/2013 7:15 PM ET|
No recovery for the middle class
Crunched by the housing crunch
While home prices are recovering and are back to early 2004 levels -- up nearly 14% nationally from their lows, but still down around 27% from their 2006 highs -- many Americans aren't participating in the rebound. Foreclosures, short sales, negative home equity and other maladies have prevented many from tapping into this wealth recovery.
Consider the chart above.
It shows that even as home prices stabilized from 2009 to 2011 before pushing higher, the homeownership rate collapsed as one-time owners became newfound renters. As a result, millions missed the bounce; those who lost homes as well as wealth in the housing collapse won't benefit from the rebound.
Now, they are suffering another negative consequence as rental rates push higher and new cash-investor landlords enjoy the rise in home values. Right now, rent inflation is running at nearly 3% -- up from 1% in early 2011 and more than double the overall inflation rate.
So much for the wealth effect from homeownership. But at least the stock market is up, right?
VIDEO ON MSN MONEY
You control our world. You’ve poisoned the air we breathe, contaminated the water we drink, and copyrighted the food we eat. We fight in your wars, die for your causes, and sacrifice our freedoms to protect you. You’ve liquidated our savings, destroyed our middle class, and used our tax dollars to bailout your unending greed. We are slaves to your corporations, zombies to your airwaves, servants to your decadence. You’ve stolen our elections, assassinated our leaders, and abolished our basic rights as human beings. You own our property, shipped away our jobs, and shredded our unions. You’ve profited off of disaster, destabilized our currencies, and raised our cost of living. You’ve monopolized our freedom, stripped away our education, and have almost extinguished our flame. We are hit… we are bleeding… but we ain’t got time to bleed. We will bring the giants to their knees and you will witness our revolution!
The middle class that built this country
You ain't kidding.
After being laid off in 2010, I am now working and making the same wage today that I made in 1989 when gas prices were less than $1.00 per gallon. We all know that every other consumable product is based on the price of gas, so in sum, I am making 1/4 of my1989 wage.
No Mr Obama, the private sector is NOT doing fine. Instead of playing the race card in Florida and pandering with Russia to get Snowden knocked off, work on the economy.
By the way, did Beth A Wood (NC state auditor ) and Tim Geithner (US Secretary of the Treasury), to name a few political sleezes, ever pay their taxes? Maybe if the politicians on both sides of the isle paid their taxes, stopped taking long weekend breaks, and voting themselves pay raises and better benefits, the middle class would have a chance of survival.
On a good note, I found a job in three weeks and can now pay taxes to help pay for the welfare of this state. The state that wouldn't give me a dime of assistance has no problem taking my tax money and then some.
I am proud to be middle class and able to support myself.
When I was a kid where I use to live was one of the best places in this country to be. Seven major corporations had plants in the town next to where I lived. Everyone had a good job. No one became millionaires but, they made excellent incomes and was able to save for a retirement. We had nice homes, a couple of good cars, groceries on the table and our bills were paid. Seven of best high schools in the state where almost 99% of the students graduated and a most of us went on to college. Crime was a bare minimum. You could leave your house and car unlocked and my mom didn't have to worry about us playing outside and some pedophile kidnapping us. We knew all our neighbors and they all looked out for us kids. We could stay out all day until the sun went down. Drugs dealers and gangs didn't exist. I know that some people would do or sell some drugs. But, it was such a minimum that it never crossed over into our lives. It was a great place.
But, fast forward 30 years. All but one of those companies has left. Every one of them were manufacturing jobs. But we make nothing here anymore so, those jobs are gone to China. The population is about 1/3 of what it was when I was young. Two high schools now! And even though most of the kids still graduate, when they do they leave because finding a decent job there is almost impossible. Crime well it's still low as compared to average for this country but it's almost double from when I was a kid. And drugs/alcohol abuse is the newest thing on the rise. Young people believe that it is only thing to make real cash. And they have nothing to do now but smoke, drink and do drugs.
But, my mom refuses to leave. And when I go home I go to the spot where my old high school use to be and see how high the grass has grown around the building that now has been vacant for years. And just sit up on the old football field and remember what it once was. I remember over 4000 people coming to these games every Friday night. It's sad. It's sad, how just a few hundred people of the course of three decades can destroy a town, a city, a county, a state and our country. Just think about that, just a small percentage of population work as government personel, people who we have put in charge of doing what is right for all of us and our nation, have destroyed it. Destroyed it with their greed and their lawlessness.
For example the city unions will receive at 3% pay raise. Oh but then they will all receive a 5% pay BONUS calculated on the wages with the new 3% already baked into the wages.
Meanwhile the city council on a 6-2 vote each time added NEW TAXES:
7% charge on electricity kilowatt hours each month billed by the Lee County Electric Cooperative as a Utility Tax.
Have implemented a Fire Assessment Tax as a separate Tax 2 tiered. Small home $97, large home $230 as a base. square footage of home such as tier 1 could be as much as $229 and the tier 2 home a minimum of $230 plus whatever the square footage would calculate out to.
They sold the program to themselves citing a 2 point cut in millage. One week later reduced the BAIT to 1 point and the final products NO REDUCTION ON MILLAGE RATE.
All this budgeted prior to the county establishing . an increase or decrease in property valuation which is the key figure to establish REAL ESTATE TAX. The final figure was an increase in propery and home valuation of 7.13%. Almost 5% higher than last year.
This is what happens when a city union loads up a city council with retired police, fire and city workers who look to SUSTAIN government in a TANKED ECONOMY that can not GROW to support it local government.
They also overspent last year by $20 million, the year prior by they also over spent. It took the police dept 3 years to reduce OVERTIME and that was 80%. There is still 20% Overtime.
The Governor in Florida calls it local politics the MIDDLE CLASS that is still shrinking calls it FRAUD and RACKETEERING!!!!
'no recovery for the mid class' duh!! ya think?? you're kiddin??? why everything is just super!! isn't it? huh? no? oh! obama fall down and go boom?? well, he can always go back to africa for another 100million dollar vacation package right? anyway....
except for the Detroit bankruptcy thing,
and the Fast n' Furious thing
and the 2 border patrol agents killed from the guns from Fast n' Furious debacle
and the no drilling for our own oil thing,
and the giving the muslim brotherhood in Egypt fighter jets thing!!!
and the Egypt coup thing!! (failed obama/hillary backing of muslim brotherhood, Morsi that just got thrown out of power thing)
the funding Syrian muslim brotherhood anti-American rebels with weapons thing
and the IRS scandal thing,
and the NSA scandal thing,
and the Benghazi thing,
and the blame everyone but himself thing for everything, THING!
and the Ben Snowden thing, (a liberal no less smackin' obama in the head, now that's funny!)
and the eternal vacationing thing, costing hundreds of millions of dollars from John Q. Public!!!
and the unaffordable care act thing,
and the stratospheric gas price thing,
and the disrespecting our allies thing
whew!! takes deep breath....ok..
and the eternal campaigning mode that pig obama is in,
and the blame Bush for everything thing,
and the Chinook disaster thing where all those Seal Team SIX men that died!! remember that thing!!
and the raising taxes thing on the MIDDLE CLASS!!!,
and the bail out the GM thing, (meanwhile its' in the red with that disaster chevy volt that's not selling)
and the 8TRILLION more in debt thing!!!
and the 4TRILLION more the unaffordable care thing is gonna cost, how 'bout that thing!!!
and the 4 AMERICANS KILLED in Benhazi thing, THAT's still not solved THING!!!
and this just in: almost forgot the Solyndra failed 'green energy bankruptcy company thing!!
aka the 800BILLON taxpayer wasted money failed liberal junk science THING!!
do you downright idiotic media shills for the worst president EVER to disgrace the white house know how stupid you sound when you print the 'obvious' NOW?, when the rest of us knew this 4.5yrs ago?
your pathetic divisive black muslim messiah is destroying the mid class on purpose, and you mention it in passing like it's just another 'thing' that just, sorta, kinda, happened!! ARE U INSANE!!! how much longer are you gonna cover for that pig?? seriously, the more you do, the less credibility you have, which was actually NOTHING anyway...
gee thanx for printin' this 'new' info, now here's another little secret, they just invented this new 'thing' I think it's called the internal combustion engine, and I think it's gonna be a BOOM for mankind!! yes!! yes!! yeeeeees!!! I know it'll be!!
5 YEARS OF INCOMPETENCE, SCANDALS, LIES, CORRUPTION, PROGRESSIVE ANTI-GOD,
ANTI AMERICAN SOCIALIST AGENDA! NOTHING THEY HAVE DONE HAS WORKED! WHERE IS
ALL THE MONEY OBAMA AND PELOSI AND REID SPENT??? HOW COME THEY ALL HAVEN'T
BEEN RUN OUT OF OFFICE AND ARRESTED ALONG WITH ERIC LIBERAL RACIST HOLDER!
THE SOCIALIST PROGRESSIVE AGENDA IS A FAILURE! EVERYWHERE! NOW IT'S HERE!
I know that in 1979 I was working in a tool and die shop making $13.67 an hour and was able to buy a house, a new car and have a stay at home wife.
You can't even keep an apartment and a new car with that wage now.
Today, I pay almost as much for a month for my cell phone bill as I did for my house payment back then.
The middle class has been suckered by big Corporations and our political system has been their main tool in doing it.
For the last 14 years I have been a manager of between 40 and 180 people. Here are my observations of the working middle class. They are great people. Many are close friends and some as close as family. They most always make all the wrong choices. At bônus time new cars always show up in the parking lot which leads to even more being bought. Bonus time is also known for providing very nice vacations, new motorcycles, guns, etc, etc, etc. Paying off debt is never considered. Debt is a way of life. All homes have all the latest things, TV´s, Iphones, etc, etc, etc. When the stock market fell in 2008 and into 2009 many sold off their 401k´s at or near the bottom and have yet to put that money back in. They have no clue what they are doing finacially and don´t want to know. One couple who works for us combined make $140k... they are the pôster children for what not to do. Their income isn´t enough and the credit cards are maxed out. They have little savings....They are always broke.
The middle class will never be rich but if they would just understand that $2k - $5k per year is all they need to save and invest and everything will be fine in the end. Instead all the wrong thigs are the priority. In the last five years interest rates have fallen to nothing. If they would have taken care of their credit their homes could have been refinanced for a huge savings. The Market has more then doubled and they have not only not invested but many have sold their 401k´s at near half price.
God Bess them and I love them but they, IN GENERAL, have made things more difficult on themselves..
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[BRIEFING.COM] Stocks continue trading near their recent levels, with the Nasdaq (+0.4%) maintaining its lead.
Earlier, we mentioned that the financial sector may hold the key to the afternoon performance among the major averages, and that is holding true thus far. The S&P 500's retreat from mid-session highs has been accompanied by weakness in the financial sector, which now trades lower by 0.2%.
The growth-sensitive group holds a modest loss as most large components hover ... More
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