Here’s An Opinion On:
Retired Workers Affected Most by Real Estate Declines
Homeowners who got caught up in the real estate boom over the past decade and a half have, for the most part, begun to realize that putting all of their eggs in one basket has put their entire financial situation in peril. From facing foreclosure right now and having a scarred credit report to owing more on the mortgage than the house is worth, borrowers across the board face declines in the values of their most important assets — their homes. But for the elderly and those approaching retirement age, the housing crash has even more serve consequences.
For those who relied on low payments from adjustable rate mortgages or perpetually increasing home values to create equity, the subprime crash that occurred in 2007 has wiped out many of the motivations of these products and assumptions. Payment resets can not be avoided when a house is underwater, as owners have no ability to refinance with no equity, locking them into their loan which may double in monthly payment. And real estate does not appreciate by 20 per year, and currencies all over the world are collapsing against each other. Of course, because the government fudges the inflation numbers, Social Security benefits never keep up with the true cost of living, and those on fixed incomes lose more and more of their purchasing power with each day the government keeps spending and borrowing and the Fed keeps inflating. It should be no wonder if the elderly are unable to afford the fraudulent loan they were given, and can not find any other affordable housing due to rising prices everywhere in the economy.
While the effects of the banks’ and the Federal Reserve’s policies during the housing boom will effect every American, homeowner or not, the most severe consequences will be felt by retirees or those approaching retirement. Prices are rising in general, home values continue to drop off a cliff, the Fed is creating new “auctions” and “windows” to inflate the dollar, and the government keeps lying about the true rate of inflation. This means that life will get tougher for the elderly and their standard of living decline in proportion to their exposure to the real estate boom even as Social Security payments are kept artificially low and vanishing home equity makes refinancing or reverse mortgages impossible.
Nick writes articles that provide
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