Jun 02 2009
It is a damning sign of the breadth of failure we are experiencing with the liberal experimental policies hoisted on the nation by the Democrats in Congress and President Obama’s administration that the list of indicators of failure is so long it takes massive posts to list them all. I started with the long post belowÂ outlining the failure to stimulate job creation and the massive deficit spending – which seems to be doing absolutely nothing but accelerating the economic troubles.
Now we see another worrisome indicator that the liberal experiment is not only failing, but making things worse:
A continuing steep drop in home prices combined with rising unemployment is powering a new wave of foreclosures. Unfortunately, thereâ€™s little evidence, so far, that the Obama administrationâ€™s anti-foreclosure plan will be able to stop it.
Â It is even more worrisome when one considers the size of the problem and the speed at which it is spreading. The Mortgage Bankers Association reported last week that in the first three months of the year, about 5.4 million mortgages were delinquent or in some stage of foreclosure.
I read somewhere that the foreclosures in the prime market have reached the same level as those in the subprime markets – which is horrible omen for the nation. These foreclosures reduce home values and push more and more households into dangerous financial territory. As the job market remains mired in historic lows, there is more and more chance people will not be able to meet their commitments.
We are facing what we engineers call a cascading failure, where a weakness in one area starts spreading to others. Maybe Obama should stay in DC and work the problem.