[Dr.Jim]

Yes,....SP and Des.

There is a reform investigation going on right now into the lending practices of banks.
Banks were allowing people into these ARMS under the no-doc loan qualifications, which basically requires no proof of income or other support information. This practice was abused by banks in an effort for them to close more mortgages.
Ofcourse, people make the ultimate decision....BUT keep in mind that alot of people trust their broker and do not understand what they are ultimately doing, finance is very complex and like 'medicine' people often trust their broker to do the right thing for them just like you trust your doctor. These people were misled by these programs and ended up in foreclosure.
On the flip side, plenty of people just bit off way more than they can chew.
From the standpoint of the Fed though, it is moreso the banks irresponsible lending that is to blame, since the banks are ultimately responsible for the loans origination, not the consumer.
Reality blames both.

[JenM]

According to sociology teacher, the U.S. became a post- industrial society in 1956. Michigan started to become one in 2003. So we are now playing catch up! That's basically it, in a nut-shell.

[intelfan11315]

Originally Posted by JenM

According to sociology teacher, the U.S. became a post- industrial society in 1956. Michigan started to become one in 2003. So we are now playing catch up! That's basically it, in a nut-shell.

Michigan started becomming industrial in 2003? Uhh what have you been smoking?

[Sparrow_temp]

POST industrial -- meaning after moving on from an industrial base.

Originally Posted by burgler09

Michigan started becomming industrial in 2003? Uhh what have you been smoking?

[Freedom Fries]

The minute the unions gained power in Michigan is the same minute the Big Three started looking outside of our borders for cheap labor. Following those jobs is most of the manufacturing base from this country, and ultimately the unions power. So you have a domino effect. Look around at the old crumbling municipal buildings in Detroit. Many of them are not even a century old, barely a blip in time. Big money has no allegiance to any locale or person. It goes where it can find more of the same.

[UpperPeninsulaRon]

Michigan is struggling so much because it is unable to come to grips with the idea that the world will no longer be as it was for southeast Michigan in the 1960's and 1970's. It is only made more difficult by politicians who are unwilling to tell the masses that some jobs will just not ever be back.

[tjay]

i think this person was looking for links and resources, not more opinions

[UpperPeninsulaRon]

Originally Posted by tjay

i think this person was looking for links and resources, not more opinions

Absolutely right tjay. I was at a Michigan Economic summit a few weeks back and there was talk about a C. S. Mott study on what Michigan should be looking at to go from where we are at (Why Michigan is struggling so much) to a new vision. The researcher can find it online at C.S. Mott Foundation.

[MittenDweller82]

Originally Posted by pistonsfan70

I just found this board while browsing the internet on topics about why Michigan is struggling so much and I've decided to focus on the auto-industry, the government and the housing market.

I've read many, many opinions on here and would love to incorporate them into my paper but I need references, so any help would be great. I do not follow politics as well as I should but any help on where most of you get your sources from so I can browse there would be of great help.


Thanks

Michigan's problem isn't just local, it is a combination of nationwide market problems, shrinking population, and the lack of funds to fix current problems. Doing a research paper on this subject would be difficult simply because cited resources would be hard to come by, I cannot recall any Sociologists doing studies on "Michigan's" economy, simply because it isn't static in nature. You might want to look on Jstor.com, a scholarly journal database for the social sciences. If your school library pays for a subscription to it, that is the best resource for you. Another good resource would be the Census Bureau's website...also has official statistics on populations, demographics, etc... good luck

[Indentured Servant]

Michigan would not be struggling if America had never benefitted and prospered from European economic powers virtually destroying each others economies via back to back world wars. The destruction of European economies virtually gave the US a monopoly in global trade. The world demanded goods and services from nearly every sector of the US economy, given the devastation of their own. Few countries could produce what we produced either due to lack of knowledge, financing, knowhow infrastructure or all of the above and more. So our nation built stuff for its citizens and more importantly for the world. We became the largest exporter and creditor nation in the world from this virtual monopoly created from the misfortunes of others, as well as what is called American ingenuity and drive.

Michigan benefitted and prospered greatly from that era by being the capital of a major industry sector, namely automobile production. The state rode the boom in Americas manufacturing preeminence to prosperity and hence the state is now riding bust of the loss of comparative economic advantage in the manufacturing sector. It’s not a “Michigan” problem in origin, but rather a national problem. It’s a mistake to look at Michigan as the source of the problem when Michigan is simply an affect or symptom of a national problem. Michigan will have many other states joining it in decline in the near future as the country as a whole is facing an economic crisis. The problem for Michigan is that it does not have its own currency or central bank or the luxury of not balancing its budget like the Federal government can do and prop up the economy.