Notes on Economics - Families

From the undeveloped note file, here are a few more, about the economy and families:

From 2001-2004, American house hold net worth was flat; as savings dropped 23%, house equities inflated 22%. The Census Bureau pointed out in 2006 that too many Americans were spending too much of their budget for housing. Nine out of ten house refinances involve taking out extra cash, usually at a higher interest rate. Now that home equities have popped, people are in a hole. Reverse mortgages are now being used six times as often to help fund retirement, depleting estates to the detriment of adult children.

In considering relief for families facing foreclosure, those pushed into sub prime loans who were actually qualified for good loans should now be allowed to refinance with credit given them for the unfair charges they paid. Truly sub prime borrowers should be allowed to refinance if their loan can be adjusted to something feasible. Speculators should lose and not be allowed to skim rent during foreclosure, under threat of seeking personal judgment for any shortfall. Special relief may be needed for VA loans to Veterans.

The top 20% of King County [Seattle and environs] households earn almost half the total income in the County, while the bottom 20% earn less than 4%. The home ownership rate in Seattle is only 48%, compared to 66% nationally.

Instead of looking at average hourly wages for American workers, we should look at the median, and factor in shrinking benefits and reduced hours. After 10 years of "welfare reform", 10 million American women have entered the work force and feel better about being workers, but financially they are not doing well after job related expenses.