[Previous entry: "Gays Against Terrorism"] [Main Index] [Next entry: "Huh?"]

12/06/2002 Entry: "The Economy, Stupid"

The Economy, Stupid

With US unemployment up to 6%, and with the Fed unable to lower interest rates much more, The Shrub (George. W. Bush) is going to learn that unemployed people care less about fighting terrorism than they do about making the next mortgage payment. November is a favorite time for companies to lay off people.

What good is buying a home and paying a gargantuan mortgage when you can be tossed out on the street if you lose your job and the bank forecloses? What good is a low interest rate loan when it spurs demand, which overinflates the price of the house so your payment remains the same? Then, you can't even deduct as much because the part of the payment that goes to interest is lower! That house isn't worth that much! People will figure it out when the interest rates rise, demand drops, and the house value drops with it. Of course, the overall payment will remain the same, natch. Meanwhile, the newly unemployed will be declaring bankrupcy when they learn they can't sell their homes for the overinflated price they paid.

DISCLAIMER: This web page was constructed with 100% recycled electrons (or, during shortages, at least 35% post-consumer electrons). No electrons were harmed in the making of this web page, although several were accelerated against their collective will. No files have been charged. And Remember: the only Good Cow is a Dead Cow. © 2000, 2001, 2002 Spastic Mutant Productions. All Rights Reserved.