Many economists believe the struggling U.S. homeowner needs greater assistance from the federal government in order to avoid foreclosure. Federal Reserve Chairman Bernanke agrees. Last Tuesday, Mr. Bernanke called for additional action to prevent our nation's distressed homeowners from ultimately losing their homes to foreclosure.
In a blog post ten months ago (and again four months ago) we examined several factors that were most likely going to impact our economy in a negative way. Here's a quick refresher...
The whole point of the article you are currently reading is to demonstrate that our nation's current economic situation was very clearly written on the wall for months (if not years). Our leading economic indicators were clearly trending into the direction of a severe slowdown. In times such as these, prudent savers and investors alike must remain so. Do not panic. Continue to think clearly and rationally about your financial situations. Now, more than ever, you should consider seeking the counsel and advice of a qualified financial professional.
"Reducing the rate of preventable foreclosures would promote economic stability for households, neighborhoods and the nation as a whole...more can, and should be, done," the Fed chief said.
Among his suggestions, Bernanke wants mortgage and other financial companies to reduce the amount of the loan principal in order to provide financial relief to the borrower. Of course Bernanke himself acknowledged this idea won't be easy to sell to the lenders.
In a blog post ten months ago (and again four months ago) we examined several factors that were most likely going to impact our economy in a negative way. Here's a quick refresher...
Even though the U.S. stock market rose to record levels not long ago, these metrics are not the end-all-be-all measures of our nation's financial status. Let's not forget the other (currently less favorable) economic indicators and their effects on our economy:Your Action Items
- Consumers are saddled with enormous levels of revolving debt
- Real wage growth is stagnant
- Personal savings rates are at 70-year lows
- Home-foreclosure rates are accelerating
- Oil prices are at record highs
- Our nation is bogged down in a costly, unpopular war
- Health care and college tuition costs are easily out pacing inflation
The whole point of the article you are currently reading is to demonstrate that our nation's current economic situation was very clearly written on the wall for months (if not years). Our leading economic indicators were clearly trending into the direction of a severe slowdown. In times such as these, prudent savers and investors alike must remain so. Do not panic. Continue to think clearly and rationally about your financial situations. Now, more than ever, you should consider seeking the counsel and advice of a qualified financial professional.
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