americanaspiration

Downwardly Mobile?

In News on April 19, 2011 at 9:25 am

This article about business professionals who have been laid off in the past few years highlights an emerging problem in the economy.  The few jobs that are being created are not replacing the job positions that are eliminated.  The story linked to below highlights one MBA credentialed business executive who spent 2 years on unemployment and then took a part time position teaching bookkeeping for $15 per hour.  There is a shortage of high value executive business positions to absorb the legions of business professionals that were caught up in recent corporate re-sizing measures.

Another problem is that many people have built skills in industries that no longer exist.  The story also profiles a woman who gained experience as a construction estimator.  With new construction at a virtual standstill the question becomes what was that experience worth.  As many are finding out now the value of your skills in the prior economy may not be even close to how today’s economy values the same skills.

Making matters even harder, is that this problem is exacerbated by the housing market that handcuffs professionals to their homes and restricts mobility.  If skilled professionals can’t move to find a job that matches their skills they are forced to accept employment in areas that either cant make use of thier experience or dont value the experience enough to translate it into compensation.

Read More:

http://www.huffingtonpost.com/2011/04/19/trading-down-long-term-unemployed_n_850220.html?page=3

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1 in 7 Nevada homes are vacant

In Data, News on March 15, 2011 at 9:19 am

US Census data shows us the enormity of the housing problem in Nevada and why it will take decades to get out of the hole.

There were 167,564 empty houses in the state last year, according to newly released U.S. Census data, more than double the number in 2000. The number of vacant homes represents about one out of every seven houses across Nevada.

An interesting blip in the statistics is that Nevada has – simultaneously – the highest rate of mobility in the country and the worst market to sell a house.

More than 16 percent of Nevadans relocated to new residences within the state in 2008 alone, the highest mobility rate in the nation, the Census data shows.

So what does that mean? It means that Nevadans are not moving willingly, they are being forced to move. Without a doubt it is going to take Nevada many years to rebuild an economy capable of supporting the excess housing inventory and clear the vacancies.

Read More:

http://www.msnbc.msn.com/id/42084625/ns/us_news/

Dysfunctional Home Loan System Stacked In Favor of Servicers

In Legal on March 8, 2011 at 6:18 am

Huffingtonpost reports about a proposed “settlement agreement” between Federal and state regulators and the top home loan servicers in the country.

Whether any of the largely common sense “reforms” end up in a final agreement or otherwise get adopted by the industry in any meaningful way remains to be seen. In the meantime the reporting and attention on the abuses in the system are welcomed and deserve more attention.

For years we have been told that the foreclosures are the fault of greedy borrowers who overextended themselves. Instead banks have been acting in their own best interest pushing homeowners toward default and even in many cases requiring default as a precondition to loan modification consideration. The result has been perverse:

servicers are instead forcing through foreclosures, racking up fees through prolonged foreclosure proceedings, and effectively disregarding the rights of investors and borrowers in pursuit of their own profit.

Read More:
http://www.huffingtonpost.com/2011/03/07/foreclosure-settlement-protect-homeowners_n_832699.html#