And I can get to the airport in 25 minutes...but I see your point. I prefer the center of town, which makes things very accessible on golf cart. I rarely crank a car on the weekends.

Oh yeah, Nixon is looking good for his age.

I hope that your move went great and you are enjoying hour new home.It is great to live here. Beautiful city and great weather. Mira

What "drop in prices?"

Got any idea how many PTC houses will soon go into foreclosure?

As far as I know the government released the banks from the stop foreclosure order as of July! These banks do not want to re-finance these homes for the current owners.

Also, do you have any idea how many local banks are carrying any of those homes or the empty retail buildings?

If local banks actually sold the mortgages to buyers then transferred them to national banks, are they liable?

How bad is it going to be?

That would be the 20% drop in prices anticipated by the end of the year, caused by the already reduced price sales fueled by the banks desperate to unload their foreclosed inventory. They really want to dump this property before the FDIC comes (always on a Friday afternoon at closing time) and takes them over or forces a sale to another bank.

There has already been a 25% drop in PTC and another 20% is not good, but predictable.
Better than elsewhere, though.
Actually most of the banks that have been taken over are more than willing to reduce payment amount and even interest rate - although not a complete refinance, it prevents a foreclosure.

There will be no local banks around here by this time next year. bankimplode.com will explain it all. Texas ratio above 100 is a sign of weakness.

Thank you for your thoughts on my questions.

I read what you said as approximately a 45% drop in value relatively soon---in other words during 2009 and 2010, I would assume.

That will be terrible for all of us if it is a general drop.
A bigger problem is what will the county and towns do for property revenue? Will they cut expenses that much or will they ask the state to vastly expand the mil rate limits?
If so, who could pay it?

Shouldn't they start now with gradual cuts?

No local banks open here!
Well, I never assumed it quite that bad but I do know it is going to be twice as bad as it is now.
The demos will be blamed here whether they are at blame or not, but I don't know what they could have done for the mess they got except let it all happen in 2009 and set up the soup lines. If the banks had all been let to go broke immediately in January, all hell would have happened immediately.

I really havent seen any of thos 25% value drops in my neighborhood sales as yet, but I suspect some of them will soon.

Revenue dropped significantly starting in 2007 and any government official that couldn't understand that early on is either stupid or irresponsible (or high). Now 2 years later they are blaming the economy for reduced tax collections and just beginning to discover that reduction in prices means a reduction in appraised values. Of course the conversation is 10% reducing costs and 90% raising taxes, so guess what's coming. At some point the idea of paying $5,000 a year in taxes on a $200,000 house is going to grate on people.

And the next wave of foreclosures and price reductions and bank failures is really going to be ugly. Many banks have been under a 90-day moratorium on foreclosures - the idea was to work out something to keep the borrowers in their homes. That worked for some, but not others because loan modifications and refinances had standards (job, income, good credit) that had to be met. Well that moratorium expired July 1 and the number of properties that will be foreclosed in the next couple of months will be huge. Banks will be under pressure to liquidate their holdings quickly and the race to the bottom (of prices) will begin. By year end that 20% will be a done deal 45% overall.

The good news is PTC and the southern part of Fayette County will be impacted less than other areas. We will still be hit hard, but will recover first. Of course if Prezbo gets his way with health care and the surcharge on high income earners, there won't be a recovery at all, just inflation and rising unemployment - coupled with more taxes from cap and trade and wherever else they can find it. Then there will be a tax revolt and the second half of his first and only term will see a Republican Congress take back the country. Sadly that can't happen until November 2010 and that will be too late for lots of us.

I hope this isn't true, but it sounds like it could be - Prezbo's planners are proposing subsidizing homeowners who can't make mortgage payments with either an outright gift (each month) or in some cases government will take over the house and rent it back to the previous homeowners. Sure hope it is a joke, but won't be surprised if it turns out to be true. The ultimate vote-buying scheme.

I thought you knew something with your predictions on foreclosures and banks, but the statement that republicans will be back in power and solve the problem immediately is crazy, and you know it!

It is such horrible shape (economy) that we won't even be through the downhill fall by 2010!

Now if Obama had shut off the trillion Bush OKed and ask for not one dime to help foreclosures and banks from failing---then it might have been over by 2010, we would be in a giant depression much worse than the 1930s.

Sure a lot of it is wishful thinking and is certainly based upon the country waking up and realizing the danger we are in - not so much from a recession, but from the onset of total government control over every aspect of what used to be know as the private sector. Already banks, car companies and soon health care and the media (if that's not already a done deal).

It will take a strong response from thinking Americans who are used to hard work to make a difference. It will be them against the entitlement group. Only question is who has greater numbers and greater resolve - that's who the politicians will pander to and who will make the economy recover - or not.

I really feel sorry for everyone under 50.

Expecting Obama to reject Bush's (or anyone's) spending spree and to resist the urge to take over the banking system and spend his way to more government control is real fantasy - sort of like inviting a tiger for dinner and being surprised when he eats your dog.

Rob, I hate to be the one to break the news to ya … but there are very few people in this country that don’t realize that in the 8 years the GOP ran amok under Bush/Cheney, this country went to hell in a hand basket. And before you lay the company line on me that, “this all came about in the 2 years the Democrats took control of the Senate,” I’ll caution you to do the homework and not lay that intellectually lazy sound bite on me.

It doesn’t take a rocket scientist to realize that a country doesn't instantly see economic disaster the moment a new government entity changes hands. The effects of “bad policy” surfaces, in some cases, a few years after a policy is either changed or a new one is created. It’s the old saying that you can’t stop an ocean liner on a dime. If you’re intellectually honest about the subject, do the homework on what Bush changed in his 1st term (2001 until the end of 2005) and look what he didn't do as well which is even more telling of his degree of ineptitude. All the signs were there that a disaster was brewing, yet he only spoke the language of war. Do this and you will clearly see that this is the root of what took us to the brink of calamity.

Had Bush and the GOP who were in total control of government for 6 full years not been lulled into a drunk and complacent GOP slumber party celebrating their political dominance while spinning tall scary tales about the boogie man (i.e., terrorism) and selling us on a war in Iraq that we now clearly see as a “SHAM” …. perhaps then President Obama wouldn’t have had to spend a damn dime on all the broken china after the GOP circus left town?

Just say’in

69%+ of American citizens agree with you. We just want the economists and strategists (regardless of party) to get us out of this mess - so that in 2 years we can begin to see daylight again! Some republicans seem to continue to defend failure. Sad.

And how is that? Yea, I know, it is all Bush's fault. But how does President Obama and a Democratic Congress "get us out of this mess" in 2 years or ever? Especially with what they are doing now - tax and spend? How does that help? Huh?

Go ahead and do your obligatory bash Bush statement, but after you get that off your tiny chest (sorry hubby typed that in - does he know you?) anyway, after you get that off your tiny chest, can you actually answer the question - the real question - which is (in case your ADD has kicked in) WHAT IS OBAMA AND THE DEMS DOING TO GET US OUT OF THIS MESS? Answer please. And please be specific.

so that in 2 years we can begin to see daylight again!

Beginning to see daylight does not translate into 'getting us out of this mess' in two years.

You don't read all of the comments here do you?

Several very good comments have been produced and written here recently.

We didn't tax much for 8 years but we sure spent. That apparently didn't work!

Even the Bush people were trying to prevent catastrophe as they left with even more spending.

The current administration can not get us back to a balanced budget and rid us of 12 Trillion debt to the Chinese, Japanese, and the Saudis, and of course some of us own some of the debt---about 25%, I think. Nor get back to 3% unemployment. We can't afford any more non-productive jobs! We have to make things and build things!
Most of our local banks will go yet, unemployment will get to 15-20% by next year, and many of our 300 thousand-1 million dollar homes will be foreclosed!

It is hoped that PTC has enough people who do not need to work to survive and just lose much of their kitty! It is BAD and not like Michaels bad!

I also have a tiny chest!

As in what is he specifically doing to solve the economic and employment problems?

You list all the things that haven't worked and what can't be done. All that looks like a cure is "We have to make things and build things" - well that's part of it, but you also have to have people buy those things we make and build. A specific plan would include what items we make or build and who it is we are going to sell them to - unemployed Americans, the Chinese?

I think your prediction or 15-20% unemployment is very possible. So will that give Obama the idea to nationalize employment - like he's done or doing with everything else? We can go back to the good old days of the 1930's where scores of unemployed men in hats and ties (love those old photos) live in CCC camps and build national parks, bridges, dams and highways.

All this tax and spend stuff is actually useless, as is the debate over high tax rates
since there won't be enough taxpayers who are willing to subsidize others by paying over 50% of their income in taxes. So all this pie in the sky stuff won't be funded or enacted. It is a major distraction from what should be job #1 for Obama.

So, I will ask again what is he actually doing? I'll even answer since most of you know but won't say - He's doing absolutely nothing to help the economy because #1 he doesn't know how and #2 he doesn't want to. The worse things get, the more distractions (aka social programs) he can create. Remind you of anyone? Think FDR and the 1930's. You unemployed people with some extra time may want to read The Forgotten Man by Amity Shales as another blogger on here suggested. Follow it up with Atlas Shrugged. Then go out and burn your Hope and Change banner - believe me you'll want to.

I've read one of those two books. Doesn't help here.

Actuallly there would be about 20% more police, firemen and teachers and Paras, out of work if not for the little that has been done in 150 days. Also some localities have saved some of their town hall employees with bail-out money.

I can't put a number on that for the 50 states but even Palin saved some jobs with the bail-out. It is at least several hundred thousand!

In a financial economy as we have, it is imperative to save the banks first. Everything functions from them. (maybe we don't need private banks?) We develop and build on credit from the banks in these days.

No loans from the bank--no progress.

Trouble right now is the banks were given the money to loan (loaned the money) but they don't want to loan it. They want to pay dividends and show a profit. (and pay execs millions). They loan each other! Great humane group of people.

Just go to a bank here and ask for $100,000 to start a business in PTC and see how much you get!

The social programs are to prevent riots, theft, mental illness, hunger, and improve childrens health.

It does provide an opportunity for the army to fill their quotas!

What is he doing, you say?
Did you expect immediate salvation?
Not like the church!

Yep, save the banks first. Good plan. No one would dispute that. But, if the purpose of the TARP funds was to encourage lending, shore up troubled loans and help businesses with short term loans, why wouldn't the geniuses in Washington write that into the spending bill and put some restrictions or even guidelines in there? Expecting banks (or even people who run banks) to instinctively do the right thing when there is a more profitable alternative is truly naive.

But no, they release billions and the banks pay bonuses and make no loans. What stupidity. And that stupidity comes from the top. Prezbo is not a leader, nor a visionary. He's not even a good administrator.

Didn't Bush sign that bill?

OCT 2008 Jan 15 2009

If Obama signed it then it is illegal!

You guys can not hide the catastrophe of Bush!

Didn't Bush sign that bill?

Can somebody please fix the "reply" functionality so that the boxes don't get smaller and smaller after each reply?