One has to wonder how long the Great Recession will last and what will be the long term impact nationwide? Remember, it took a global conflict to bring us out of the Great Depression and we were able to transform our new found industrial might into a global force. What will happen this time around? Leave a comment, let us know what you think.
Again, from Cincinnati.com: “American household budgets are improving as employment increases, wages rise and consumers limit new debt. More than 500,000 workers got jobs during the first quarter while U.S. personal income gained 2.1 percent, according to Labor Department and Commerce Department data. A Federal Reserve gauge tracking the amount of disposable income going to mortgage and credit card bills shrank to a 12-year low at the end of 2010.
“As the economy has improved, as job creation has improved, we are beginning to see that reflected in the foreclosure numbers,” Jay Brinkmann, chief economist of the Washington-based mortgage bankers group, said in a telephone interview. “Real estate markets reflect what’s going on in the rest of the economy.”
A reduction in defaults doesn’t mean the housing crisis is coming to an end, said Joshua Shapiro, chief U.S. economist at Maria Fiorini Ramirez Inc. in New York.
About 6.4 million home loans were either delinquent or in foreclosure in April, according to Lender Processing Services Inc., a Jacksonville, Fla.-based mortgage-transaction and data firm.
“It’s going to take a crazy amount of time for the process to play out, because of the sheer volume,” Shapiro said. “We may see some of the numbers come down a bit, but foreclosures are going to stay very high for a prolonged period of time – a year or two, or even more.”