09-04-2006, 04:54 AM
Aloha Punatics,
I wonder how corporations fit into this. They are an "entity" by law, yet have no morals whatsoever and their only goal is to make money. They don't die and they will eat their own young - or at least their own employees - if it will make more money. You can't sue the people running them, either, so that gives them another insulative layer should they cause grief in their quest for more profits.
On another note, what with all the increase in property values, folks have been re-mortgaging and pulling the equity out. I've heard that at this time there is even less equity in America than before the huge run-up in prices. A large portion of our economy has been supported by these equity fueled consumers as well as the employees in the building frenzy to make money on the rising house prices. What happens when the prices fall? Consumerism falls, less stuff being bought = less employees needed to make it, employees in the construction trades are laid off, unemployment goes up and soon a lot of these folks will be looking for food stamps and other forms of welfare.
How about the folks who bought houses at overinflated prices on an adjustable rate mortgage. They figured the prices would continue to go up and they could sell at a profit? They can only afford the $1,800 a month payment they started with or maybe just a bit more, but if they could afford more, they probably would have gotten the fixed rate mortgage in the first place. The price of gas goes up and it costs them a couple hundred more to get to work each month, the interest rate goes up and it costs them a couple hundred more each month to pay the mortgage. This is with two incomes, so the first time one of them gets sick and unable to work, or the car needs repair or anything unforseen happens, they will need welfare. Can you get welfare if you own a house? You can't file bankruptcy anymore to get out from under what is owed, you still owe it even if you go bankrupt.
I think in the next several years, anyone who can come up with a big chunk of change will be able to buy out some of these soon-to-be distressed properties at really discounted rate.
Oh, Hazen, the reason you may be seeing the folks in Puna buying groceries like the way they do in poorer neighborhoods on the mainland is because Puna is the poorer neighborhood around here. I don't think Hawaii island has any true "slums" although some small parts of Oahu come close. Ka'u doesn't have the same population density so even though it might be "poorer" it is more diluted.
There also isn't all that much social stigmatizm about getting goverment handouts here. If they want to give stuff away, why not take it?
Anyway, enough typing now, my coffee cup is empty.
A hui hou,
Cathy
I wonder how corporations fit into this. They are an "entity" by law, yet have no morals whatsoever and their only goal is to make money. They don't die and they will eat their own young - or at least their own employees - if it will make more money. You can't sue the people running them, either, so that gives them another insulative layer should they cause grief in their quest for more profits.
On another note, what with all the increase in property values, folks have been re-mortgaging and pulling the equity out. I've heard that at this time there is even less equity in America than before the huge run-up in prices. A large portion of our economy has been supported by these equity fueled consumers as well as the employees in the building frenzy to make money on the rising house prices. What happens when the prices fall? Consumerism falls, less stuff being bought = less employees needed to make it, employees in the construction trades are laid off, unemployment goes up and soon a lot of these folks will be looking for food stamps and other forms of welfare.
How about the folks who bought houses at overinflated prices on an adjustable rate mortgage. They figured the prices would continue to go up and they could sell at a profit? They can only afford the $1,800 a month payment they started with or maybe just a bit more, but if they could afford more, they probably would have gotten the fixed rate mortgage in the first place. The price of gas goes up and it costs them a couple hundred more to get to work each month, the interest rate goes up and it costs them a couple hundred more each month to pay the mortgage. This is with two incomes, so the first time one of them gets sick and unable to work, or the car needs repair or anything unforseen happens, they will need welfare. Can you get welfare if you own a house? You can't file bankruptcy anymore to get out from under what is owed, you still owe it even if you go bankrupt.
I think in the next several years, anyone who can come up with a big chunk of change will be able to buy out some of these soon-to-be distressed properties at really discounted rate.
Oh, Hazen, the reason you may be seeing the folks in Puna buying groceries like the way they do in poorer neighborhoods on the mainland is because Puna is the poorer neighborhood around here. I don't think Hawaii island has any true "slums" although some small parts of Oahu come close. Ka'u doesn't have the same population density so even though it might be "poorer" it is more diluted.
There also isn't all that much social stigmatizm about getting goverment handouts here. If they want to give stuff away, why not take it?
Anyway, enough typing now, my coffee cup is empty.
A hui hou,
Cathy
Kurt Wilson