The Housing Crisis and Wall Street Shame

[Crewleader]

Sunday, November 29, 2009

Robert Reich

One out of four homeowners is now under water, owing more on their homes than the homes are worth. Why? The biggest single factor behind the housing crisis is rising unemployment. According to the latest ABC-Washington Post poll, one out of every three Americans has either lost their job or lives in a household with someone who has lost a job. Today it takes two and sometimes three incomes to buy the groceries and pay the mortgage or the rent. So if one of those incomes is gone, a homeowner can't make the payment.

The scourge of unemployment is splitting America into three groups: (1) the third just mentioned, whose households are in danger of losing their homes and whose kids are surviving on food stamps (that's up to one in four children in America today); (2) the vast majority of Americans who are managing but worried about keeping their jobs and homes; and (3) a small number who are taking home even more winnings than they did in the boom year 2007.

Prominent among category (3) are Wall Street bankers, many of whom are now concluding their most profitable year ever. Goldman Sachs is so flush it's preparing to give out bonuses in a few weeks totaling $17 billion. That will mean eight-figure compensation packages for lots of Goldman executives and traders. JPMorgan Chase is rumored to have a bonus pool of around $5 billion. The three other major Wall Street banks are ratcheting up their compensation packages so their "talent" won't be poached by Goldman or JPMorgan.

http://robertreich.blogspot.com/

[jtrockville]

1. This "talent" they speak of... it's the same folks who caused the crisis?

What a shame it would be to lose them, eh?

[Double T]

2. It is a national disgrace that the depression perpetrators,........

bailed out by the American people, are allowed to continue corrupt business practices as usual and get bonuses for doing it. Unfortunately, revolution is the only answer but the American people don't have the stomach for it; perhaps when their stomachs are empty this will invoke the necessary change. The rise of homeless and hungry Americans will continue.

[JohnWxy]

3. Robert Reich is great, but don't look for shame on Wall Street - that's one commodity they dont have

[NMDemDist2]

4. i don't fit in any of those catagories

I saw the bubble crash coming and cashed out of a house in AZ, paid cash for a smaller house in a smaller town and hubby and i found good jobs (after a couple years of scrambling) and we're doing good

so i try to give back a lot to those who need help and are struggling

i wasn't a genius, just read the DU Economy forum daily and made the move in spite of family and friends saying we were nutz

who's laughing now? well, not me since I don't find joy in other's misfortune, but i will admit I do wear a smile now and then

:evilgrin: