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Let's take a look at what's wrong with our economy: real estate values have busted and plummeted all over the nation. Where is the capital of the real estate crisis? California. Home loan companies in California loaned billions of dollars to unworthy borrowers and then sold the loans to investment houses in New York City who packaged them and then sold them off to the American investor. The appreciating real estate values in California lead to a frenzy of building & more home loans (to even less-worthy borrowers) as people began to purchase more and more real estate for speculative purposes rather than living purposes. California real estate speculation helped to crush our economy and New York City CDSs brought it to everyone's front door. Let's also not forget that California was in danger of going bankrupt not too long ago. You may want to rethink your statement.
It wasn't just California real estate. Don't forget Nevada and Florida. And the bubble was widespread across the nation, especially in high priced markets. But overall you have explained the situation well.
It wasn't just California real estate. Don't forget Nevada and Florida. And the bubble was widespread across the nation, especially in high priced markets. But overall you have explained the situation well.
Oh it certainly wasn't just California who had a hand in the real estate mess. Nevada, Florida and Arizona are major offenders too. New York City wasn't the only one involved with the CDS trades either. London had a large part in it too. Funds in the Bay Area and Boston were also involved to a degree.
However, California and New York are the two headliners of the crisis. They are where the greatest amount of trouble has come from.
Location: Austin, TX/Chicago, IL/Houston, TX/Washington, DC
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^^ Remember this part, this is the second time I have tried to rep you today. You are on a roll.
In all seriousness though, very few people understand the actual reasons to why the housing crisis stirred up.
Las Vegas is not looking so hot right now. Their unemployment rate is higher than Detroit's right now. And they are the largest metropolitan area on that side of the list, that is terrible news. This is where they'll begin coining the term "dust belt".
^^ Remember this part, this is the second time I have tried to rep you today. You are on a roll.
In all seriousness though, very few people understand the actual reasons to why the housing crisis stirred up.
Las Vegas is not looking so hot right now. Their unemployment rate is higher than Detroit's right now. And they are the largest metropolitan area on that side of the list, that is terrible news. This is where they'll begin coining the term "dust belt".
Americans aren't spending money like they once were. Places like Las Vegas are almost entirely dependent on tourism.
Location: Austin, TX/Chicago, IL/Houston, TX/Washington, DC
10,138 posts, read 16,047,399 times
Reputation: 4047
Quote:
Originally Posted by californio sur
Americans aren't spending money like they once were. Places like Las Vegas are almost entirely dependent on tourism.
Which is why it's hard for them. The problem with cities that depend too much on one industry is that they think that industry will drive them forever.
I am sure Las Vegas never thought the day would come where people would stop visiting them as much and instead take that dollar they were going to put in the slot machine and put it in their bank account.
It's actually quite sad. Las Vegas has been trying to branch out into tech, but a lot of companies have actually relocated from there to places like Raleigh, North Carolina & Austin, Texas.
American's might not be spending more anymore, but American's still need to get one thing into their heads. Is it better to have a job right now that pays lower than it did before the global recession or to not have a job at all?
One of the biggest relocation problems has been that there isn't enough fresh minds being produced to match the Asian counterparts who come in through H1/L1 visas and work for a fraction of the wage and do the same job more diligently for more hours.
That is why the jobs have been outsourcing, especially IT. My parents are into IT, they tell me it's the wrong field to go into. It is basically gambling with your career, one day you have a job, the next you might not. One day you work in Minneapolis, the next day it might be Seoul, South Korea.
It is very unexpected.
Trust me I see it in India all the time, I am Indian myself, those mofo's there are quite happy. Our mistakes are paying for their brand new car or house, or island in Dubai. I am being completely serious too. We are dropping major cash in China due to our mentality.
In my honest opinion, American's are way to accustomed to the upscale lifestyle where money buys what you want, and that's the moral of this recession. Do not spend more than you have, and do not spend money aimlessly, because what you have today, there is no certainty that you will have that tomorrow.
^^ Remember this part, this is the second time I have tried to rep you today. You are on a roll.
In all seriousness though, very few people understand the actual reasons to why the housing crisis stirred up.
Las Vegas is not looking so hot right now. Their unemployment rate is higher than Detroit's right now. And they are the largest metropolitan area on that side of the list, that is terrible news. This is where they'll begin coining the term "dust belt".
I actually tried to rep you on this post...I love the term "dust belt" haha.
Las Vegas in effect did the same exact thing as Detroit: it put all of its eggs in one basket. Even though the industry of vice usually does great regardless of the situation, they really shot themselves in the foot by trying to be a real place. By that, I mean they tried to make themselves into a city where people would actually try to live instead of continuing to be a goldmine where people visit to gamble, buy prostitutes, get drunk, do drugs, maybe watch a show and then leave thousands of dollars poorer a few days later.
I guess you could say before the crisis they were playing with house money...somehow they managed to screw that up.
Well, the factories closed down and almost everything is produced overseas now anyway.. The south side / south suburbs of Chicago, Northwest Indiana and a lot of the "rust belt" region of the Midwest used to be many many factories producing the stuff that you guys on the coast consumed. And all that corn in the rural Midwest means you and I get to eat.
OMG! No more Los Angeles! No more mindless entertainment.. HOW WILL WE EVER SURVIVE?!?!?
You don't give L.A. enough credit. I seriously hate it when ignorant people believe entertainment is the only big industry out here. L.A. is the largest manufacturing center in the U.S. with apparel, computer and electronic products, transportation products, fabricated metal products, food products, and furniture. L.A. is also the 2nd biggest producer of automobiles, with Honda, Mazda, Toyota, VW, and Volvo I believe. Los Angeles is also the nation's largest port in terms of value of goods handled and tonnage. So of course, the motion picture industry, although did not start here thrived here and before it came here wasn't that big of a business anyways, but it is not the only thing L.A. has contributed to the U.S. over the years.
BTW, I could do just fine with the corn that is produced in CA, along with the other crops which contribute to 1/3 of the nations produce.
Trust me I see it in India all the time, I am Indian myself, those mofo's there are quite happy. Our mistakes are paying for their brand new car or house, or island in Dubai. I am being completely serious too. We are dropping major cash in China due to our mentality.[/b]
I know it is a little off subject but I love the Metro PCS commercials with Ranjit and Chad.
I can assure you, the Indian people, at least the younger ones who grew up here do not act like that.
I don't even look Indian, which works out nicely.
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