The latter is what is missing these days of bailout after bailout.  The housing market has been in the crapper for quite some time.  This didn’t happen overnight. Banks say they don’t want to foreclose on houses, Bullshit. They know that property isn’t being made anymore.  They know that one day that land will be worth something.  The 700 billion bailout hasn’t done squat, but make the rich richer.  Not one foreclosure has been prevented. Banks will not renegotiate loans so that people can afford to stay in them.  

 After I got laid off, I tried to renegotiate my auto loan to get my monthly payments down until I find another job. I offered to make half the payment and then add the difference to the end. I have two years left on a 60 month payment plan.

More after the jump.

   Add to that, while I was employed, I began paying off debt that I owed.  I had a choice, pay my lawyer to keep my children or pay my bills.  Needless to say, my credit is shot. Even though while I was employed I made every effort to repay my debt.  Interesting enough, so many things now revolve around your credit score.

 Auto insurance, the better your credit score, the cheaper the rate you can get  auto insurance.  The other day I found out that when applying for a job, your credit score can effect the possibility of being hired.  

 Don’t worry, I am getting to my point soon.

 Companies are in business to make money.  Almost every business in America revolves around people buying things.  When people can’t afford to buy, it doesn’t matter what the supply is like, there is no money to buy. Demand is there for many items, but making 25,000 a year doesn’t cut it.

 $1,000 a month for rent is half of money earned. $100 a month for auto insurance, $150 a month utilities. Toss in some groceries and a few new pairs of socks, bras and underwear, and you are tapped out.  Oh, I forgot health care.

 Now, the Big Three just flew into the Capitol to ask for $25 billion in loans to carry them through until the middle of January 2009.  OK, then what?  They make it into 2009, file bankruptcy anyway, bust up the UAW, layoff the rest of the employees, cancel retirements that people have worked for years for.  And BOOM, no more buying of anything. The Rich have theirs and the working stiff is screwed.

 There is a cure though, but the congress is too chicken shit to do it.  A Living Wage. around $35,000 a year.  With a set amount for health care.  Companies would know in order to operate in America, they will have to pay their employees a set amount, with annual or semi-annual raises for inflation.

Bonuses if available would be paid out a bit more even.  not this $100 for the guy in the shop and $100,000 for the manager, and $500,000,000 for the CEOs.

 Until what is left of the working poor can get decent wages to live on and pay their bills, this economy is going to hell quick.  Housing values are going to continue to fall, and people will owe more than what it is worth.

 The first thing that needs to happen when Obama is inaugurated, it set an across the board living wage.  Sure profit margins will get cut big time, any loss the company has will be reimburse by the government, and give that company three months to become operational while keeping its employees.  If that means the fat cat on top has to cut way back on the private cars and airplanes, so be it.  I that person doesn’t want to lead the company because he is not getting his millions, I am sure someone would do that job if it paid $20,000 more a year than the living wage.

 This is a growing book I am writing, any input from others will be greatly welcomed.