Why Home Prices Will Fall

How could home prices fall? The government is bailing out big lenders, helping some homeowners facing foreclosure and for new buyers creating ultra cheap mortgages with practically nothing down and giving them an $8,000 tax credit.

But they will fall and the reasons are sad but simple. Foreclosures are growing fast as borrowers either can't afford their adjustable loans or are losing their jobs and the job market is dismal. People are scared and when they get scared they slash their spending, which means more businesses will go under while many others won't hire.

This bodes badly for people taking on what is often their biggest financial obligation, purchasing a home. Many become fearful and won't do it.

Meanwhile, last week The Mortgage Bankers Association stated that as of September 30th, 1 in 7 U.S. home mortgages were delinquent or in foreclosure, the highest number they have ever reported. And they project that number growing worse.

So what should you do? Not knowing your personal situation, I can only generalize:

If you're a homeowner facing foreclosure, speak with your lender about a major forgiveness and new terms. If your situation is beyond that, you'll have to downsize.

If you're a potential buyer, be patient. If your job is safe and you intend to occupy that home for at least five years, proceed, taking advantage of the lowest interest rates in 50 years.

But in any case, these plummeting prices and the pain they will cause others are nothing to celebrate. These are our brothers and sisters and their children and in this collapsing economy any of us could find ourselves in financial peril. Please be compassionate and spare what you can to help those in need.

Dick

Finishing The Job In Afghanistan

"It is my intention to get the job done," proclaimed President Obama, stating that despite eight years of war, the U.S. until now had not had "either the resources or the strategy to get the job done."

There is no way to "get the job done in Afghanistan," for that empty abstraction of a phrase means nothing, but signals an escalation of this disastrous war in support of a corrupt Afghan government.

With the help of Congress, what this charismatic and persuasive young president will finish is our economy and his presidency as he pursues his "war of necessity."

This siren song of ego has destroyed many nations across history and along with the Iraq War, it is now on the brink of destroying ours.

Before it does, please raise your voice for moral and fiscal sanity. If we don't stop these wars, more of our brothers and sisters will die brutal and meaningless deaths or will endure a lifetime of horrific suffering, as will their loved ones.

You can make a real difference if as a matter of conscience and conviction you will confront a government gone war mad.

Dick