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June 5th, 2008
06:01 PM ET

More than a million homes in foreclosure

FROM CNN's Jack Cafferty:

More than a million homes in the U-S are now in foreclosure, a staggering figure that shows how hard the economy is hitting millions of Americans.

A report by the Mortgage Bankers Association shows the rate of both home foreclosures and late payments set records in the first quarter of this year, the highest in nearly 30 years. And, it's only expected to get worse. The group says the slump in housing prices was the biggest factor for more foreclosures and late payments. And, there will likely be more in the months to come since home prices are expected to keep dropping.

Some states are especially hard hit: California, Florida, Nevada and Arizona accounted for 89% of the increase in new home foreclosures. These are states where the prices dropped sharply and there was too much supply due to a lot of construction.

Many homes in Michigan and Ohio have also been foreclosed. In those states, it's because of rising job losses, especially in the automotive sector.

Around the country, the housing market meltdown and ensuing credit crisis have helped push the economy to the brink of a recession – if we aren't there already. Consumers and businesses are spending less, and employers have cut more than a quarter-million jobs in the first four months of this year. Investor Warren Buffet says the recession has already started and will be longer and deeper than anyone expects.

Here’s my question to you: What does it mean when more than a million homes are now in foreclosure?

Interested to know which ones made it on air?

Radiance from Spring, Texas writes:
The American Dream is slipping away. If something does not change, we will be a country of the very rich few and the very poor many, like India. Wouldn't that be exciting? Actually, despite denials, we are invested in each

Ray from Nashville writes:
It means that somewhere along the line, people have forgotten how to say no, or more importantly, have forgotten about their obligation to say no. Lenders should have said no to people who they knew could not afford the payments on these trick mortgages once the real payment kicked in. Borrowers should have say no to these same trick mortgages that offered initial low rates, but were sure to go up in the near future.

Rick writes:
It means maybe, maybe, Washington will begin to realize just how much the American people are hurting. From the mortgage crisis to gas prices, our leaders still have their blinders on. At some point, they'll have to stop paying lip service to these problems and actually start addressing them. We can only hope.

Jorge from Lancaster, California writes:
It means responsible people who read the terms and conditions of their mortgage, borrowed within their means, had excellent credit and put a sizable down payment in order to build up equity are seeing the value of their greatest asset and family institution go down the drain through no fault of their own.

Linda writes:
People can't afford gas to get to work or look for work, high unemployment rates, high cost of health care to name a few. How can one make a mortgage payment when they can't even afford a few gallons of gas?

Rick from West Hollywood, Calif. writes:
1 million homes in foreclosure and a recession "longer and deeper" than anyone realizes mean one thing: George Bush and the GOP's chickens are coming home to roost. And we are the newspaper lining the chicken coop floor.


Filed under: Economy • Uncategorized
soundoff (204 Responses)
  1. Esther Cuyahoga Falls Ohio

    trickle down has hit us all
    this is the legacy of reagan
    back door deals with the saudi's
    iran contra coming back to haunt us

    June 5, 2008 at 2:23 pm |
  2. Matt Toohey

    What it means is that many people bought homes beyond their means financed by lenders more concerned about making a buck in an environment that over inflated prices in a time when people are earning less.

    Matt
    Rockford, IL

    June 5, 2008 at 2:23 pm |
  3. Mike Nunn - Hot Springs, Ar.

    It means that Bush is on track with his plan to improve the wealth of his friends. His lack of oversight allowed this to happen and since many of his friends made a bundle, he is happy.

    June 5, 2008 at 2:26 pm |
  4. Ed Reed

    President Bush sees himself as Teddy Roosevelt, but he's more like Herbert Hoover.

    Ed Reed
    Port Aransas, TX

    June 5, 2008 at 2:26 pm |
  5. Nora Corpus Christi Texas

    It means too many Bush Years, we need to take a new direction and more of the same just won't get it done!!!!!!Too many people are losing the dream of owning a home, how much worse does it have to get before people say enough!!Democrats please take back the White House!!!!!!

    June 5, 2008 at 2:27 pm |
  6. Charles Liken, Lansing, MI

    George Bush proved to us that anyone can become president and anyone can lose his home.

    June 5, 2008 at 2:28 pm |
  7. Michael Smith, New Orleans

    The real question surrounding the current home foreclosure crisis is who is getting rich off this mess? I'd bet my house is isn't the Democrats.

    June 5, 2008 at 2:30 pm |
  8. J.D. in NH

    It means the deregulation of the banking industry has given corporate crooks free rein to bilk the average American. It doesn't make me feel too positive about John McCain's candidacy since his primary economic advisor was one of the legislators responsible for it.

    June 5, 2008 at 2:33 pm |
  9. Stacy from Virginia

    Jack, it means a lot of people made a lot of bad decisions. The lenders made bad decisions by loaning too much money, the people made bad decisions by not reading the terms of their loan agreements, and the Government made no decision to step in and regulate the two. You think that after the repeated scandals of Enron, Tyco, and their ilk, the government would learn that if you don’t regulate businesses to some degree, then you are left with a mess. This mess may be one that we will suffer with for a long time.

    June 5, 2008 at 2:34 pm |
  10. Caryn, Washington DC

    It means that our economy is in shambles and we better get a Democrat elected to the White House before we're all out in the street.

    June 5, 2008 at 2:35 pm |
  11. Mark, Berwyn, PA

    That far too many people were living beyond their means. No surprise. It's simply the economic reaction to poor financial decision-making. For most of those folks, I do not feel sorry for them. But I am certain that a few people are being hurt NOT because of financial mismanagement, but due to the poor economy (i.e. job looses). For those folks, I do feel terrible. But I think they are the minority of the foreclosure population.

    June 5, 2008 at 2:35 pm |
  12. Mike, Syracuse NY

    Jack, it means at least a million people bought into an idea that really was too good to be true. They bought a lot more house than they could afford betting that prices would keep going up. They lost the bet. Now they expect the government, using my tax dollars, to bail them out. Thanks, but no thanks.

    June 5, 2008 at 2:35 pm |
  13. sarah, Indiana

    it means Jack, that too many people were encouraged to buy a home that they could not really afford. it means predatory lending practices were allowed to get way out of hand. in short Jack it means stupid government let bad companies hoodwink silly people who should have had the good sense to know better. i guess it was business as usual in the good ol' u s of a.

    June 5, 2008 at 2:36 pm |
  14. Mwita (Los Angeles, CA)

    It means if this country doesn't change economic direction, we will be the richest nation of poor people. Its like having a gold plated tin can. A rich government standing on the backs of its poor citizens.

    June 5, 2008 at 2:36 pm |
  15. Jim in Cape Coral, FL

    Jack,
    It means alot of people are paying the price for predatory lending practices held so dearly by our corporate controlled government. With Bush's sights being set on Iraq for six years it's now the insignificant little people in America who must pay the penalty for having no oversight or government regulation. But hey, might as well blame the homeowners who should have read the 300 page legal document they signed.

    June 5, 2008 at 2:36 pm |
  16. Joe from Nashua, New Hampshire

    A million homes in foreclosure points a sad finger at our national obsession with excess.

    We don't want to just own a home: We need to own a BIG home.

    We don't want just a TV: We need a 48" plasma TV.

    We don't just want a car: We want a gas-guzzling, checkbook-draining status symbol.

    And when our finances finally get stretched and pulled too far, we don't want to just fess-up,admit our gluttonny, and tighten our belts: No, we want to blame George Bush and the rich-people-loving Republicans.

    Spend like Democrats, then blame the Republicans for our self-imposed financial problems.

    I wonder how Obama plans to change that!

    June 5, 2008 at 2:36 pm |
  17. Karen an Independent from Pennsylvania

    It means don't vote for McCain if there is a solution to be found. As I undertand it, his key financial advisor is or was a lobbist for UBS, which was instrumental in this crisis. But of course, "W" has to bear part of the blame too.

    June 5, 2008 at 2:36 pm |
  18. Anne/Seattle

    For some it means individuals are paying for their lack of awareness about buying a home. For some it means that both legislators and lenders have let them down through lack of action or a lack of integrity. It means millions of people are in real distress financially and emotionally and that the whole nation will pay a price for the result. When a segment of the financial community takes advantage of our citizens, Congress needs to take action on their behalf. We have been losing touch with integrity for at least eight years. The effects of Bush's presidency has been a numbing of the responsibilty in the business culture and this won't change without awareness and action.

    June 5, 2008 at 2:37 pm |
  19. Linda in Virginia

    Yes Jack, it's a sad state of affairs in our country right now. I've been unemployed since Jan 2nd, and that great 5.5 fixed rate mortgage is going to be in danger if I can't find a job soon.This single parent isn't wanting to become a statistic. House on the market since Feb 19th and not selling. This is my first recession as I really don't remember one in my lifetime that I didn't breeze thru and I'm over the hill.

    June 5, 2008 at 2:37 pm |
  20. Peter Pan Fairview, Texas

    It means a lot of people bit off more then they could chew and instead of going on a diet continued to eat too high on the hog. In other words they spent more then they made. That was bound to catch up with them eventually. Most of those people should have been living in rental property to begin with and now the economy will move them into it.

    June 5, 2008 at 2:38 pm |
  21. wally rehmann in las Vegas

    i hope the house flippers are ran out of business, but feel sorry for the ones that lost there job , because the job went overseas. houses have been overpriced, wages are going down, its only a matter of time till the bubble pops....its the whole system, never before have i had to pay 20% of my income to get gas.

    June 5, 2008 at 2:38 pm |
  22. Nancy in Florida

    What it means to me is that we Americans have our priorities skewed. The housing bubble was simply a huge pyramid scheme in which all of the players were guilty of greed and none of them paid attention to the basic laws of addition and subtraction.

    June 5, 2008 at 2:38 pm |
  23. CRAIG R. MCNEES

    tampa, fl. that my prediction from 2 years ago is now true, this is just the tip of the iceburg folks, better stake a claim to the area underneath you closest overpass soon, as they are going to fill up fast. instead of economic stimulus checks, they will be passing out free houses after the govt. bails out all the banks for their bad loans.

    June 5, 2008 at 2:39 pm |
  24. Judith from Rochester, NY

    It means the American Dream is dying. For all the have-nots in America owning a home and raising a family in respectability has been the symbol of a life well-lived. The distribution of wealth in this country is unconscionable. Our first attempt at saving the American Dream ought to be passage of laws that get a quality livable wage in the hands of the middle and lower economic classes. The American dream means living a life of dignity and once people are stripped of that you can anticipate a serious class war.

    June 5, 2008 at 2:39 pm |
  25. Tom, Avon, Maine, The Heart of Democracy

    It means George "Sheriff of Nottingham" Bush has taken from the poor to give to the rich.

    Barack "Robin Hood" Obama will create consumer protection laws and salvage what can be saved.

    The problem is by January Fannie "Maid Marian" Mae will be well and truly deflowered.

    June 5, 2008 at 2:40 pm |
  26. Ryan, Champaign IL

    Jack, the public is once again suffering for the sins of the powerful and irresponsible. I didn't think that I was affected, until my Washington Mutual credit card rate more than doubled along with most of their customers. Come to find out, this company lost billions in this crisis, and is shaking everyone down to recover. Every aspect of American life is affected by this calamity, but the epic foreclosures hurt the most.

    June 5, 2008 at 2:40 pm |
  27. Scott - Wichita, Kansas

    It means people need to learn to count.

    If you are making 1500$ a month, you probably cant afford a 500$ mortgage, plus food, gas, car, clothes, etc.

    Maybe they'll finally learn their lesson to spend only what they have, and not more.

    June 5, 2008 at 2:40 pm |
  28. Mickie in Philadelphia, PA

    It means the Republicans are only out to get rich off the backs of the little people, and they have succeeded. Not to mention they have gotten more of our young people killed while they and their cronies make money off the war. Anyone who votes for McCain can't be in their right mind.

    June 5, 2008 at 2:40 pm |
  29. Diane Glasser

    Simply that the housing crisis is not over and that the Bush government and Wall Street are ignoring it and hoping it will not bother them while they both continue to make money off the public.

    June 5, 2008 at 2:40 pm |
  30. Paul

    Jack,
    If the banks don't really want all these houses back then why do they advertise for reverse mortages about twice an hour in prime time.

    Paul Austin, Texas

    June 5, 2008 at 2:42 pm |
  31. Michael Steuer,. Bedford, N.Y.

    When the Reagan and Bush 41 administrations closed their eyes to allow their buddies (and children in 1 case) to create a catstrophe for the American public during the Savings and Loan scandal of the 80's, one would have hoped that a lesson was learned. NOT TRUE!. Lack of oversight by the Bush 43 administration has caused another grave problem for Americans. Thank G-d our economy has only 5 more months of Republican stewardship.

    June 5, 2008 at 2:42 pm |
  32. Ralph in New York

    Jack, it means that our economic woes prevent so many from being able to meet their mortgage payments. In addition, it indicates so many unscrupulous companies who have given mortgages to people who are not able to meet what is asked with the turn of our economy.

    June 5, 2008 at 2:45 pm |
  33. pat carnes

    the iraq cabnet set themselfs a salary of 50,000 dollars a month.
    Would this be true or false?

    June 5, 2008 at 2:45 pm |
  34. Brian from Fort Mill, S.C.

    There are two main forces that cause this: greed and stupidity.

    The mortgage brokers were greedy by using predatory lending practices, and the homeowners were stupid for buying too much house, knowing that they couldn't afford it.

    We need regulation for the banks, and education for the homeowners. Put the two together, and these problems largely go away.

    June 5, 2008 at 2:45 pm |
  35. Major Michael Lorton, Virginia

    Jack: It is a trend that maybe the alleged recession is starting, however, it only represnets about 3% of the mortgage market. Ninety seven percent still have their home and are making payments......but don't be fooled by statistical trolls........if Ed McMann can loose his home........so can others. I would say that it is an "concern indicator".....and how much concern depends upon us.

    June 5, 2008 at 2:47 pm |
  36. Maryann CT

    It means that people are personally irresponsible with their money and purchases

    June 5, 2008 at 2:47 pm |
  37. IFEANYI AZUBIKE Houston, Texas

    Means that we are reaping the fruits of Bushnomics and a good reminder why we need to reassess John McCain's understanding of the US economy, becasue he is begining to understand the raqi economic but can't seem to grasp the ABC of our economy. Sadly too, it means that we are in deep trouble.

    June 5, 2008 at 2:47 pm |
  38. David - Texas

    A few greedy American bankers and real estate speculators are getting rich to match their Arab counterparts. The rest of us can barely afford to drive to work and many Americans have fewer (1 million) homes to go at night.

    June 5, 2008 at 2:47 pm |
  39. Kevin from MA

    Jack I was thought that if I can't say something nice I shouldn't say anything. I am taking that option on this one.

    June 5, 2008 at 2:50 pm |
  40. Terry from North Carolina

    Jack
    It means that we are all living way over our heads and now we are in deep deep do do.

    June 5, 2008 at 2:51 pm |
  41. Dave in Astoria

    Jack...It means that the fine, upstanding Phil Gram, the advisor and fund-raising lobbiest that is McCain's right-hand man, did his job so very well. He's one of the main reasons the banking industry has gotten all the freedom from regulation. Doesn't this seem a little odd to the McCain backers?

    June 5, 2008 at 2:52 pm |
  42. Dave from Mission Viejo,California

    In order to make a large number of loans, and therefore keep the price of their stock high, the large financial corporations pressured homebuyers into risky loans. Then when interest rates went up and property values went down the inevitable tidal wave of foreclosures and bankruptcies ensued. This is, of course, a serious problem for the economy and, if we had any intelligent people in the Bush administration, a serious problem for the government. All these foreclosures stem directly from a lack of government regulation of the financial services industry. The severity of the problem can be lessened by re-regulation of lenders to stop the overreaching and misleading practices that caused the mess in the first place.

    June 5, 2008 at 2:54 pm |
  43. Bob Fleming

    There is nothing to worry about. Soon "the decider" will decide to do something and we all will live happily everafter. This is the way all fairy tales end.

    June 5, 2008 at 2:54 pm |
  44. Larry McCumber

    Give me a minute Jack. Let me think? Got it! It means we're in a recession – depression!! My question is who in their right mind would want to be president and have to clean up this administrations mess? God help whom ever is elected. They're going to need all the help they can get.

    Larry in Florida

    June 5, 2008 at 2:59 pm |
  45. Billy G in Las Vegas

    it means the Phil Gramm led deregulation of the banking and brokerage industries in the 1990's was a disaster for the American financial consumer. with little or no regulatory oversight, anyone with any common sense would know there was going to be massive market manipulation and outright fraud in the system.

    the "Great Ronnie" famously said "government isn't the solution to the problem, government IS the problem" and after the Republicans had control of the House and Senate for 12 years from 1994 thru 2006 and held the Presidency since 2000, his own political party's incompetence in governing proved him correct.

    June 5, 2008 at 3:01 pm |
  46. Adam Mercer Oshawa, Ontario

    Jack,

    This problem is not unique to America, and in some ways the economy is in worse shape up here...we pay more for gas in Canada than you do down there! We have shady credit deals and mortgages that are pretty thin too. Unfortunately we lack a leader who seems ready to recognize the problem much less try to fix it....count your lucky stars down there that at least the government is recognizing that there is a problem.

    June 5, 2008 at 3:01 pm |
  47. Bruce St Paul MN

    It means there are a lot of people hurting, people who ran out of options. It means our national standard of living is in decline, even while some of our largest corporations are reaping record profits. It means that banks would rather be stuck with maintaining properties that they can't sell than find a way to keep people in their homes. It means Reaganomics was, is, and always will be a giant hoax. it takes more than Wall Street to make a healthy economy. We can't call ourselves a prosperous nation if so many people are suffering.

    June 5, 2008 at 3:02 pm |
  48. Ben Johnson

    Crossing the 'million' threshold is just a reminder that all asset bubbles created by misguided monetary and fiscal policies must eventually burst. And given the accelerating rate of housing price declines, this bubble is far from being fully deflated.

    Ben, Chicago IL

    June 5, 2008 at 3:02 pm |
  49. Jake Hillsboro, OR

    I hope the voters remember this is the result of the GOP's deregulaation of the bankiing and mortgage industries. It's a hallmark of that party to give full advantage to business over it's citizens. They have always considered that America exists for the enrichment of those at the top. Trickle down stuff you know.....Give me all your money, and I'll determine how much you get back. And I bet everyone thought it was done thru taxes imposed by the Democrats. Taxes pay the bills first, free enterprise capitalists pay themselves and stockholders first, then their employees if they haven't fired them.

    June 5, 2008 at 3:03 pm |
  50. Helen from Mifflin County, PA

    It means we need to get priorities in order and find ways to work for the greater good instead of individuals and businesses trying to pad their own accounts at the cost of the average American. But then is Ed McMahon an average American?

    June 5, 2008 at 3:04 pm |
  51. Lori in Battle Creek, MI

    It means that all the McCain supporters should jump on board with the Obama campaign before there are two million homes in foreclosure!

    June 5, 2008 at 3:06 pm |
  52. Ron Mechanicsville, VA

    Gas goes up even when it’s down, Military folks can’t sell their homes to PCS and thus the military gets the shaft once again! Homes being foreclosed, there was a poor and middle class before all this and the divide just got bigger! The horsemen are ridding, Jack!

    June 5, 2008 at 3:06 pm |
  53. Judy, Exeter, Ca

    It means the middle class taxpayer will have to pay and pay for years to come. It means that the property values of those who made wise choices will be affected as well. I believe it is why Bush is so hell bent on making his tax cuts permanent, he wants to be sure most of the burden falls to the middle class.

    June 5, 2008 at 3:07 pm |
  54. Debby

    It means after this Presidential race is over the economy will come back like in every other election. Foreclosures were going on in 2004 and Kerry couldn't get in with his economy pitch.

    June 5, 2008 at 3:08 pm |
  55. Dick B

    It means more people will be watching "Flip this House" and an endless run of "cash flow" real estate schemes on late night tv.

    June 5, 2008 at 3:08 pm |
  56. don in naples, florida

    It means that trickle down economics is in full force. Thanks President Bush, and both the republican and democratic congress' for your responsible leadership. I am sure none of your houses are being foreclosed upon so you will be able to deny the seriousness of your bad decision making.

    June 5, 2008 at 3:08 pm |
  57. Paula in Albuquerque

    I know knothing of high finance, but I do know who has been in the White House for 8 years, and that everything that he has set his hand to has come-up "craps"! As are the thousands of dead in Iraq and Afghanistan staining him and his karma, so is the economic chaos which he has set in motion, nationwide. The blame for such terrible conditions can be laid at no one else's door but his...the Star-Spangled Idiot to beat them all, who has no idea that he'll not be able to buy his way out of the spiritual reckoning, which awaits him...

    June 5, 2008 at 3:10 pm |
  58. TR in TX

    Jack,
    It means a lot of people bought houses they couldn't afford and a lot of banks and mortgage companies made a lot of loans to people they shouldn't have!

    June 5, 2008 at 3:11 pm |
  59. Don Bezler

    Jack, With over a million homes ih forcloser tell me Bush did a find job
    with the economy,you can bet your NONE of Bushs buddys are
    losing there homes.

    June 5, 2008 at 3:11 pm |
  60. marilyn

    it means that a lot of hard working people were handled by the lending community like a used car salesman selling to middle class people by dangling a dream in their face

    it means the govt will spend more money rebuilding homes is Iraq than helping troubled homeowners in the states

    it means that even more will lose their homes while congress does a 4 year study on the lending industry – they will get their hands slapped and everyone else will have to fund the loss

    June 5, 2008 at 3:11 pm |
  61. Dave from Veazie, ME

    Jack,

    It means that our economy is in a very clear recession caused by 8 years of moronic leadership at the highest level. George W. Bush and his cronies that he gave jobs that they were highly unqualified for have ruined our country and made it impossible for anyone except for those at the very top of the income ladder to actually move up in the world. I'm sure he'd try to just spin this as a minor fluctuation in a strong economy in a last ditch effort to try and save his "legacy", but I'm sorry George, your legacy is written in stone, worst president in the history of the United States of America.

    June 5, 2008 at 3:12 pm |
  62. Don-Ocala, FL.

    It simply means that credit was too easy to obtain and people bought more of everything than they needed. Do not however feel sorry for the lenders as they created their own problems and some of them deserve and need to disappear just like any other business that makes fatal decisions looking for obscene profits. The borrowers would not have made bad decisions if they where properly educated, but unfortunately ignorance is alive and well because our educational system is flawed and our young can drop out too easily. Lack of knowledge leads to all sorts of negative outcomes like crime, suicide, low income, unemployment, etc, etc. etc.

    June 5, 2008 at 3:15 pm |
  63. Michael King Of Prussia, PA

    It mean we can not have John McCain who has admitted he has no clue when it comes to economic issues. If he is elected, we can be assured that we will go threw yet another great depression.

    June 5, 2008 at 3:16 pm |
  64. Tina (Ft Worth)

    So much for the American dream of owning a home. When you try to call your home loan you find out they don't know where it is. How can home owners try to save their home if the loan is god knows where? Thank you Mr Bush. What a right mess you have got us in.

    June 5, 2008 at 3:16 pm |
  65. Barbara

    Maybe John and Cindy McShame can put 20 or 30 families up in their eight mega-homes. Would help a little.

    June 5, 2008 at 3:16 pm |
  66. Steph, FL

    It means we never owned a home in the first place. It takes an average person a lifetime to pay off a house. And our house usually out live us. So, If the home mortage companies find it appealing to have this many homes given back to them at this rate. Then they can pay off the debts for us.

    June 5, 2008 at 3:18 pm |
  67. David,San Bernardino,CA.

    It means that the chickens are coming home to roost. Lenders gave money away to people who could not repay and speculators kept buying so that they could flip their houses to each other. This is just the beginning of the real estate disaster. The worst is yet to come.

    June 5, 2008 at 3:20 pm |
  68. vince nizzardi, new Jersey

    jackzilla, it means that instead of serving the best intrests of the American people, our elected officials have been only looking out for whats best for big business, banking, special intrest groups, etc., and it's been going on for decades. They have allowed these preditors to do anything they want, while the American people take it on the chin, over and over again. Those who took an oath to do whats right for the people , and then did the opposite, will go down in history, in shame, for what they have done to this great nation. Make no mistake, the failure of our leaders to choose honesty, and honor, over the jingling of silver coins hitting their pockets,has put us where we are now. There is still a chance we can get on the right track. but we will need huge, permanent changes. Keep your fingers crossed.

    June 5, 2008 at 3:21 pm |
  69. Jack in Lombard

    Ahhh... another trick question? It means we are in deep doo doo, the kind that a government stimulis check won't fix. People much smarter than me have discovered the trick to a shell game that got them a bonus while the 'good stuff' rolled down hill to the rest of us, without any hope of finding the bad guys. ...and our elected officials spend their time doing what? How about buying a friend with a stimulus check? Mighty fine!

    June 5, 2008 at 3:22 pm |
  70. Jason, Koloa, HI

    It means that the fear-mongering that Republicans use to scare Americans into voting for them will not work this time. Who cares if the bad guys are going to get us when there is nothing left to get. Hey McCain, do you mind if we camp out on that aircraft carrier, we don't have anywhere else to live.

    June 5, 2008 at 3:24 pm |
  71. Carol

    It mean that our young rich liberal educated Obama supporters mouths are watering waiting to become the rich new landlords.

    Carol

    June 5, 2008 at 3:24 pm |
  72. Steve ,Idaho

    It means the deregulation and privatization of government scam of the Republican Party does not work. They're "less government" policies over the years always leads to corporate scandals and corruption ( like the S&L and Enron scandals} which always ends up being paid for by the American taxpayer.

    June 5, 2008 at 3:25 pm |
  73. Terry in Hanover County

    It means never vote for a candidate who thinks trickle-down economics is a good idea, never vote for a candidate who has Phil Graham as an advisor, and never vote for a candidate who hugs President Bush.

    June 5, 2008 at 3:27 pm |
  74. Jack in Lombard IL

    It means folks that worked their whole life for the American Dream have lost a big part of it. Retire? How about keep working and hope to eat AND fill the heating oil tank this winter!

    June 5, 2008 at 3:28 pm |
  75. Pat, Ontario Canada

    It means Obama is going to win the election!

    June 5, 2008 at 3:31 pm |
  76. Lawrence R. Decoste

    Jack,

    Our next president barack obama will have alot of fixing to do with foreclosures and other problems facing america. I think he needs a women like Hillary to guide him along for tips. because Barack is new to the field, I think by having Hillary along the ride will make him a great president. because bringing a man and a women together is what this country is about.

    June 5, 2008 at 3:32 pm |
  77. Pete, Fla.

    More than a million homes are now in foreclosure. Duh.

    June 5, 2008 at 3:32 pm |
  78. Nuwan Sam

    America has lost it touch.

    Nuwan from Houston, TX

    June 5, 2008 at 3:33 pm |
  79. Nuwan Sam

    American dream is bankrupt.

    – Nuwan from Houston, TX

    June 5, 2008 at 3:34 pm |
  80. al mernatti michigan

    This means that George Bush did a hell of a job on the economy also the do nothing congress also with gas prices how in the hell did they ever elect this man what a legacy this man will have what a country everybody is living the American dream and John Mccain wants to follow Bush's plan this next election will be a landslide Obama wins old john can't even read a teleprompter I can under stand why John wants them old town hall meeting

    June 5, 2008 at 3:37 pm |
  81. Ray in Nashville

    It means that somewhere along the line, people have forgotten how to say no, or more importantly, have forgotten about their obligation to say no. Lenders should have said no to people who they knew could not afford the payments on these trick mortgages once the real payment kicked in. Borrowers should have say no to these same trick mortgages that offered initial low rates, but were sure to go up in the near future. Now we're waiting and hoping for Congress to come up with a solution to our woes. I'm not sure I have confidence in the people coming to our rescue. Do you?

    June 5, 2008 at 3:37 pm |
  82. Patricia

    Well Jack, what it means to me is that too many people put their trust into lenders/mortgage companies. To make matters worse, people who had pensions plans with these type of stocks in their portfolios are also taking a bath because companies are going bankrupt. Everyone & I mean everyone is going to be flushed out to sea. Only the oil companies are making money right now & if I hear 1 more CEO whine about how much money gets put back into exploration I'm gonna toss my cookies.
    Patricia
    Palmdale, Ca.

    June 5, 2008 at 3:37 pm |
  83. Ron San Diego

    Hi Jack:

    It means many of them over extended themselves and wen out on a limb to buy a house they could not afford. They did not read the FINE PRINT on the mortgage paperwork.

    What escapes me is why the banks green lighted financing for people who were not qualified to buy.

    Ron San Diego

    June 5, 2008 at 3:38 pm |
  84. Ann, Newton, New Jersey

    When people like Ed Mc Mahon are in foreclosure, you know we are all in trouble. I am so glad that my small place is already paid for, otherwise I would probably be standing in the same line.

    June 5, 2008 at 4:10 pm |
  85. Marie

    It means we were warned it was unsustainable, and are paying the costs for ignoring those warnings. Now what other warnings are we ignoring? What will their costs look like?

    June 5, 2008 at 4:10 pm |
  86. Keith - Ohio

    Only 1 million..? My guess is that this number is low compared to what the end-result will be.. It means that congress can legislate almost anything that they want, but there is never any thought to checks & balances... or how do we police the legislation...

    How many big banks do you see giving back that easy money they were so eager to cash in on..? The rich get richer and the poor get poorer... and the middle class just keeps getting smaller and smaller.

    Bring in term limits, OR vote the old goats OUT and get some patriots back in office instead of these self-serving fat cats.

    June 5, 2008 at 4:10 pm |
  87. A Kraft Naples, FL

    greedy mortgage and real estate brokers...big business at its worst

    June 5, 2008 at 4:14 pm |
  88. chryssa

    It means that people got carried away when times were good. If they had lived within their means and kept 6 months' savings in the bank as recommended, we wouldn't be having this foreclosure crisis at all.

    Boise, Idaho

    June 5, 2008 at 4:16 pm |
  89. B. Gooch from Columbus Ohio

    It means a lot of well intentioned Blue Collar people are seeing Red and feeling blue because of the actions of a bunch of yellow bellied white collar criminals who have escaped with the green! And that's so cold that it makes me hot and I'm trying to be cool but I'm really heated!

    June 5, 2008 at 4:19 pm |
  90. Jay, Mississippi

    Jack, Real Estate is my profession, It means that we need real tax reform, too many people buy homes they cant afford for one main reason they want the tax break. The second major reason, is that we need safer communities. The second reason people buy homes they cant afford is in order to live in communities that appear to offer safety as opposed to neighborhoods that are more affordable but often riddled with crime. It is taxes and safety Jack. I blame Bush for a lot of things, but this mortgage crisis is just as much the fault of borrowers and buyers, municipalities, and the tax code, as it is Bush, Mccain or Obama/Clinton. We could blame the banks and the builders buy ultimately it was not their fault. Could they have done some underwriting differently yes but still it was not their fault

    June 5, 2008 at 4:20 pm |
  91. Katiec Pekin, IL

    Jack,
    Many people are saying it is people living beyond their means.
    It is that to some degree, but it is also the fact that people
    thought they had security with their jobs, which they did
    not, had a medical emergency that wiped them out
    financially, did not budget in $4.00 a gallon gas among
    other increases, and these mortage lenders doing
    anything for a commission and bonus.
    Why there were no government regulations for the money
    hungry parasites is a mystery, ha.

    June 5, 2008 at 4:20 pm |
  92. Gigi in Alabama

    I hate to say it, but it looks as though we are headed for a great depression. The haves may call it a recession . . . but if you loose it all, it is a depression.

    June 5, 2008 at 4:20 pm |
  93. JW Georgia

    To me it means a combination of factors created the perfect storm: an overbuilding of homes, a period of easy credit offered to the un-creditworthy, an overpriced housing market, and a government sound asleep at the oversight switch. Even as we speak, the Fed is snoozing away while the inflation monster awakens. When inflation reawakens, homes may once again represent a solid value compared to money, but our problems will be far worse than a few foreclosures.

    June 5, 2008 at 4:20 pm |
  94. Greg form Mechanicsburg PA

    It means that “Voodoo” or “Trickle-down” economics has proven to be a failure and the price for this darling of the conservative right has inflicted terrible pain upon our economy. It does no good to blame those who embraced adjustable rate mortgages that unscrupulous lenders offered as a way to reach the American dream. It means that we must place safeguards in the system to protect borrowers for their own ignorance and hold carpetbaggers accountable for their lecherous actions. If we do nothing to step in to help these people, we would be as responsible as Herbert Hoover was for the Great Depression. Let’s learn from our mistakes and move forward.

    June 5, 2008 at 4:20 pm |
  95. DeMarcus from Chattanooga, TN

    It means the economy hasn't reached rock bottom yet, but we're picking up speed on the way down; unless something is done about this economic freefall it’s going to leave a gory mess when we do.

    June 5, 2008 at 4:21 pm |
  96. Liz Williams

    Well, it means these people wanted Bush for four more years and now we have to suffer the consequences. It is so sad.

    June 5, 2008 at 4:21 pm |
  97. Lloyd S.

    Let's hope that those who got us into this situation will learn not to make this mistake ever again. Homes are in foreclosures, people like me are unemployed, gas prices are through the roof and so far things are still at a standstill. People are scared and well they should be.

    June 5, 2008 at 4:22 pm |
  98. Hope M.Madisonville, KY

    What it means is that there are at least 2 million people who will not vote for McCain along with the many more millions who have lost their job to overseas competition and the many millions who are tired of paying $4 for gas. The Republicans are on their way out this year!

    June 5, 2008 at 4:25 pm |
  99. Larry from Georgetown, Tx

    That the law of supply and demand still applies. Plus the greed of the bankers to sell homes to most anyone is catching up to all of us. We have done this to ourselves so we cannot blame anyone since there is no regulations on these issues, ie less government means more freedom to be greedy.

    June 5, 2008 at 4:26 pm |
  100. David Alexandria, VA

    It means that the economy is going through the same type of adjustement as it did during the dot-com bust - and for largely the same reasons. We let the "good time roll" even though conventional wisdom tells even the most casual observer that a correction was imminent. Dot-com was on Bill's watch. The mortgage issue is on Bush's. Oil is on the watch of every administration and congress since 1974. We just lack the national resolve to ...well...resolve the tough issues. I don't know where that went.

    We'll get through this as market forces adjust and some regulatory oversight comes into play (late). But we need to get real with ourselves. No more oratory–no more legislative gridlock–no more filandering with the public opinion for the sake of being elected.

    June 5, 2008 at 4:28 pm |
  101. Chris

    It goes back to deregulation of the banking industry in the 1980's – The Reagan Era – and with the current Bush cast of characters perpetuating the culture of greed – just remember – John McCain was one of the Keating Five 20 years ago.

    Thousand Oaks Ca writing from Paris, France

    June 5, 2008 at 4:28 pm |
  102. Bernie of Lowell, MA

    A few years ago we had the 'dot com' bubble burst; now we've had the housing price bubble burst.

    So many people gambled with the ever -increasing home values and refinanced repeatedly, spending the money on 'frills'.

    For them, there should be no relief.

    For the poor souls who just entered the housing market, they deserve some sort of break.

    June 5, 2008 at 4:29 pm |
  103. R.M., Jacksonville, FL

    It means we need a tax cut so our money doesn't go to a bridge to nowhere but to the economy and our bills.That's exactly what John McCain will do, Obama will only make matters worse. The government needs to leave us alone.
    R.M.
    Jacksonville, FL

    June 5, 2008 at 4:31 pm |
  104. C. Farrell, Houston, Tx

    It means that George W. Bush's home isn't in foreclosure and he doesn't care.

    June 5, 2008 at 4:31 pm |
  105. Peg

    It means we are in a serious fiscal pickle in the USA~the list is long and sad. My concern is how this ever be "fixed"; or if it can be "fixed" at all.

    It is a very sad state of our economy; thanks to the Bush administration and all those who voted for him. Disgusting, sad and embarrassing to our nation.
    Peg~Saratoga Springs, NY

    June 5, 2008 at 4:32 pm |
  106. Steve

    It means that over 1 Mil. people in the USA are living beyond their means. America is anomored by having a new house and living from paycheck to paycheck. I don't think I should pay or the gov't should pay to bail you out stop living beyond your means . I live in a modest area and I have a two story home with 4 bedrooms,I could have built a new home a few years ago but I did not want to go in debt ,so I don't feel sorry for some people.You get what you pay for not what you want

    June 5, 2008 at 4:36 pm |
  107. Debbie,NJ

    It means that our current administration cares more about the well being of other countries than it does about it own people. Katrina is another example of this. I know its not about caring but politics, but we put them in office.

    June 5, 2008 at 4:37 pm |
  108. LaVerne E Brison

    Jack: It means that I have been in my home for the last 28 years, paid my mortgage on time and is now not able to sell my home so that I can move to another State. The enormous amount of foreclosures on the market have driven the value of my home down . If I want to sale I would be practically giving my house away. I guess I will have to stay put for a while longer. A lesson to the people who want to buy homes: get a 30 year fixed mortgage!! The problem with most people is that they were greedy and thought that those low interests rates were great and that they were going to save a lot of money. People also bought larger homes than they could really afford. Other people used their homes like credit cards taking out home equity lines of credit , buying cars, taking vacations, paying off credit cards, getting home improvements, etc. , they have no one to blame but themselves.

    June 5, 2008 at 4:39 pm |
  109. Mike in St. Pete Beach, Florida

    Hopefully it means I can finally buy a house at a reasonable price.

    June 5, 2008 at 4:50 pm |
  110. Susan, Seattle

    It means we're screwed Jack. Obama is going to have a big mess to clean up by next January.

    June 5, 2008 at 4:52 pm |
  111. Colleen, Weddington, North Carolina

    It means we are at great risk of increasing the chasm between the rich and the poor. It means that those that foreclose may never realize the American dream of owning a home again. It means more homeless. It means less retail sales. It means fewer taxes for infrastructure improvements such as bridges, roads and education. It means a depressed population both fiscally and emotionally. It means we should be angry for letting this administration get us into such a financial downturn. It means we should vote Democratic November 4th.

    June 5, 2008 at 4:53 pm |
  112. Rick PA

    It's called money laundering of historic proportions. And America is broken. I agree people took loans they thought they could afford and probably could afford at the time. But didn't realize they were being taken advantage of by predatory lenders. Then the jobs left and salaries dropped. Then the market bulls got pockets full the banks got bailed out. And everyone else were told to deal with it. Now the World Trade Organization is mad that congress passed a farm bill. Other nations prosper and we get more food stamps. What's wrong with this picture.The answer is NAFTA. Now they don't want to extend unemployment benefits to fund the war. Where is the 158 billion the pentagon can't account for? This mis-government should be ashamed of themselves.

    June 5, 2008 at 4:53 pm |
  113. Myron in NY

    The American dream of a chicken in every pot, gas in every tank and a house with a white picket fence was essentially started by Bush and Greenspeak. Pity the people who believed in them. My only problem is when the hell are the prices of condos coming down in Manhattan?

    June 5, 2008 at 4:54 pm |
  114. Rlouden

    Jack, it means that there were a lot of people who need to learn to read contracts.

    That contracts need to be written in plain English, not double speak and that Credit Agencies Should Be Picking Up The Tab For This Disaster....

    June 5, 2008 at 4:59 pm |
  115. Jenna Wade

    What does it mean when more than a million homes are now in foreclosure?

    It means more than a million families without homes

    It means more than a million households will not pay local, state and federal taxes

    It means that more than a millions workers jobs will be in jeopordy, i.e. mortgage, city workers, etc..

    We can bail our Bear Sterns, but we can't bail out Americans?

    Let's not forget all those family pets that are left behind in empty foreclosed homes to die or the animal shelters busting at the seems for those who were lucky enough to get dropped off..

    Jenna
    Roseville CA

    June 5, 2008 at 5:00 pm |
  116. Rick OH

    What does it mean? It means that this nonsense that multi-billion tax breaks to the wealthy will somehow benefit us all is ... well, nonsense. (I would have used other words, but I wanted this note to have at least a chance of getting on the air.)

    June 5, 2008 at 5:03 pm |
  117. Mari, Salt Lake City, Utah

    A sad, sad, tragedy. There are a lot of people who bought "too much" home with too little money, too much Credit card debt, auto debt........ and now they are in trouble. America needs a wake up call!

    June 5, 2008 at 5:04 pm |
  118. Allan Hanson Cameron Park Ca.

    Unfortunatly the American dream has always been to own your own home, but the largest. I don't blame them as much as the loan companies that made loans they knew that were shaky (100-125 % of the value of the home. Those are the people that should be in prison.
    Does anybody see the cost of gasoline and the economy as responsible for this.
    The last 7 years hasve been a disaster. If you loose your job you can't make your payments.

    June 5, 2008 at 5:07 pm |
  119. Rob, Arvada, CO

    Here is a prime example of a distinctive difference (among many) between Hillary and John. Hillary wanted a freeze on current prime mortgage rates. John McCain is against it and basically says that mortgage holders "screwed themselves" and it is not the feds' responsibilty to intervene. Hilllary supporters need to reflect for a awhile and see the numerous diametrical differences between what she supports and what McCain supports. Address the issues!

    June 5, 2008 at 5:09 pm |
  120. Josie

    I and my husband worked all our lives to put ourselves through college, put our kids through college, pay for our home and save some for retirement on a teacher's salary. I surely don't want to pay for someone's big house that I couldn't even afford. If you buy what you can't afford you just have to give it up.

    June 5, 2008 at 5:09 pm |
  121. Ben Nichols

    Hey John,
    It does not seem like enough pressure is being put on Mortgage Servicers in regards to handling the current housing/foreclosure crisis. Mortgage servicers do not own mortgages. They simply get paid to handle the collection of payments so they do not lose anything if the loan goes delinquent. Instead, they get paid MORE to service delinquent mortgages. Being that it is most profittable for Mortgage Servicers to foreclose on a home rather than modify the loan, many of these servicers of mortgages are simply letting their ineptness to handle this crisis increase their own profits. Mortgage servicers like Ocwen, ASC, GMAC and SPS are just as responsible fo the 1MM homes in foreclosure as the greedy mortgage companies that wrote stated income loans for people who could not afford them.

    June 5, 2008 at 5:09 pm |
  122. pugas-AZ

    It probably means a million people bet on the "come" and lost

    June 5, 2008 at 5:13 pm |
  123. Mitchell in NJ

    House values go up and down. To sell now, you need to give a bargain but you'll buy at a bargain so it's a wash. People moving out of a home they put zero down on and paid a perversely low mortgage on are going back to an apartment. They've either lost little or lost what they were willing to gamble – just like the rest of us.

    June 5, 2008 at 5:15 pm |
  124. Ryan

    No this is not Bush's fault. People need to take responsibility for their financial decisions. If you can't afford it don't buy it. It is really pathetic to see people whine about the government rather than exercise personal responsibility.

    June 5, 2008 at 5:15 pm |
  125. Mike out West

    It is amazing how people do not take responsibility for their actions. Yes, the mortgage companies had preditory practices, and sold mortgages to people they should not have. HOWEVER, we the people are responsible for our actions, and that includes reading the contract!

    Read before you sign, and know what you can afford.

    June 5, 2008 at 5:16 pm |
  126. Chicago Bob from Illinois

    It means the economy crashed, leaving a lot of people without the ability to pay the mortgage costs for houses that they never should have bought based on credit that they never should have obtained. The current administration caused this by there dislike for regulation and the GOP fat cats get the money policy is responsible.

    June 5, 2008 at 5:16 pm |
  127. Donna De Sopo

    I never knew Bush was so powerful. It's amazing how he made foreclosed Americans commit the sin of gluttony. Many of them had no problem buying homes beyond their means, stripping the equity to buy mac-daddy SUVs or lounge out on the sands of Waikiki Beach while sipping $10.00 Pina Coladas. But they conveniently forgot about those pesky things called consequences.
    Donna
    Hendersonville, TN

    June 5, 2008 at 5:18 pm |
  128. Dave Arnholt, Moorhead, MN

    This is an example of what happens when capitalism is not regulated. Our country is deeply in debt because of tax breaks given to the very rich during a rime of war. Our infrastructure is collapsing because we are shipping our money to Iraq and to China. Bad government brings bad problems and we have both.

    June 5, 2008 at 5:19 pm |
  129. Deb from Lancaster, PA

    It means we have squandered economic prosperity so that W can play "war" with real soldiers (Didn't they give him enough toys when he was a kid?)
    It means that our economy is in for more trouble...the housing market has traditionally served as an indicator for the longterm health of the economy as a whole. Housing market down = economy down.
    It also means that I'm a little bummed out. I am a Realtor, which right now feels a little like being an igloo builder looking for work in the Amazon.

    June 5, 2008 at 5:23 pm |
  130. Loretta from California

    It means we should expect to see American Corporations becoming more and more corrupt if McCain is elected President.

    OBAMA 08

    June 5, 2008 at 5:26 pm |
  131. DENNIS FORTUNE

    It means game, set, match – the capitalists, with the support of Washington, are taking the last bastion of working peoples assets. The Resolution Trust Corp version 2 is about to appear on the scene. The people will get the debt and the capitalists will get the money!!

    June 5, 2008 at 5:26 pm |
  132. rick Viburnum Mo.

    The republicans have deregulated everything! When you have the foxes guarding the hen house what did you think would happen? The American people need real leadership. We all need to pray.

    June 5, 2008 at 5:26 pm |
  133. Randy from Cupertino, CA

    I don't see any end in sight to housing chaos unless we stop the banks from repossessing. It means more and more people will be out of their homes without any help from the government. Same government that let them into this mess to begin with. We need major changes in our banking industry but I doubt that it will ever come.

    June 5, 2008 at 5:26 pm |
  134. Malisa, 24 Oklahoma

    it means someone has to do something with this outrageous oil price issue. im a single mother and i own my home. i make about 30,000 dollars a year. how long do you think i can afford these prices? someone has to do something!!

    June 5, 2008 at 5:28 pm |
  135. Steve from California

    The foreclosure crisis is simply one measure of an economy that is spiraling deeply downward. Every indicator seems to be heading into the tank. it seems to get worse every day. One-million foreclosres may just be the tip of the iceberg that eventually sinks America.

    June 5, 2008 at 5:29 pm |
  136. Nicole Webb

    I live in Florida and it was like a three ring circus down here with people buying and flipping homes, condos or refinancing to pull the money out of the false equity. This is one area I agree with McCain, although I am a Obama supporter. There should be some personal responsibility to owners that signed on the dotted line even though they knew they couldn't afford the payments. Many of them hoping to make a dollar. However, I feel that people who own the home they live in, and are in trouble there should be something to save their domicile for them. However, I have no
    pity on the speculators.

    June 5, 2008 at 5:34 pm |
  137. Sondra C. From Phoenix, AZ

    Many of people losing their homes are suffering from their own impatience.

    My husband and I were prequalified for a mortgage 4 years ago, and we decided not to take it, because we didn't want to have our payments increase, and we didn't qualify for a fixed rate. Instead, we worked to improve our credit, saved more money for a bigger downpayment, and waited.

    Last month, we were prequalified again, this time for a mortgage with a fixed, low interest rate. We also bought a home listed for half of what we were approved for, because it was a forclosure.

    Our patience paid off, and I don't feel sorry for the people who are now in foreclosure because of their impatience.

    June 5, 2008 at 5:37 pm |
  138. Robert Sutton -- Tulsa, OK

    It means someone screwed up. Anyone want to take a wild shot at who those "someones" might be?

    June 5, 2008 at 5:37 pm |
  139. Kevin in Denver

    It means our government never misses an opportunity to repeat bad history. Remember the savings and loan crisis? Minimal oversight in critical financial markets is not good policy – it's no policy. If you want proof that bad history will continue to repeat itself, ask yourself – what ever happened to those "Keating 5?" That's right ,one of them is running for President and he still believes minimal oversight is good policy.

    June 5, 2008 at 5:38 pm |
  140. vincent

    That mean we the people been screwed once again by the gop.

    June 5, 2008 at 5:44 pm |
  141. Conor in Chicago

    It means that, since McCains' economic planner was a lobbyist for UBS, the European bank that is still benefiting from this mortgage meltdown and largely caused it, we should vote for him since Barak Obama is black, "inexpereinced", a sercret muslim, and last I heard the anti-christ. Think people...think.

    June 5, 2008 at 5:45 pm |
  142. Jay, Denver CO

    It means the ecomony is in great shape!

    McCain '08!

    June 5, 2008 at 5:46 pm |
  143. Beverly -NYC

    Jack:

    It means the country is going to hell in a handbasket.
    When foreclosures hit people with multi million dollar homes like like Ed McMahon, what's the little guy to do. The gov't found the money to bail out Bear Stearns. Where is the help for those citizens who were taken advantage of by greedy brokers.

    June 5, 2008 at 5:46 pm |
  144. Lynn In Mo.

    My husband and I owned our house and had to morgage it for more than what it's worth to pay for his hospital and medical bills. We owned it and are now in debt for another 30 years and we are living on his social security disabillity. Not everyone did this to themselves by wanting what they thought they could afford never realizing that the interest rate could be increased so incredibly high. What's wrong with wanting a home for your children. It's part of the American dream. This whole mess is heartbreaking and scary. Don't blame the victims.

    June 5, 2008 at 5:48 pm |
  145. Pat, Fayetteville, NC

    It means what we have known for some time. With the war in Iraq – totally unnecessary -, the outsourcing of jobs, allowing businesses to bring in as much cheap labor as they want, failure to secure our southern borders, and failure to regulate subprime mortgages, there are few jobs that will sustain the middle class. Adding insult to injury, our elected officials appear to be unable to tweak the oil industry and find out how it is manipulating the price of a barrel oil. Remember, the price of a barrel oil, is a far cry from the cost.

    If we fail to come together collectively to solve what ails the country, one million homes in foreclosure is a drop in the bucket. And we ain't seen nothing yet!

    June 5, 2008 at 5:49 pm |
  146. Shafi Alam

    It means that foreclosures of homes (more than a million) are mainly due to job losses (more than a quarter-million in the first four months of this year). Job losses are due to bad economy that in turn is due to wasteful spending of tax money in the Iraq war that was voted by the senators including Hillary Clinton and John McCain and executed by the current administration. President Bush won election due to choosing Liebermann the then half hearted democrat as running mate of the democratic nominee for the presidential election. Liebermann has turned into an Independent and has promoted the campaign of McCain to be the republican nominee this time. So, Senator Barack Obama should be very careful to choose his running mate. There is a talk in the media that Hillary has the option to run for the president as an independent.

    Shafi Alam
    Austin, Texas
    Now Tokyo, Japan

    June 5, 2008 at 5:52 pm |
  147. Passing Buck

    Well, since one of them is mine – an investment property that the loan never should have been approved on as it turns out – it means a lot. While I won't be out on the street my once stellar credit rating is now in the toilet. It will take years to recover from the hit. No blame, my bad decision. We do, however, need to take steps to strengthen the underwriting standards for mortgage loans, and 100% financing ought to go away. It makes it too easy for people to make bad decisions since there is no price to pay at the time of closing.

    June 5, 2008 at 5:53 pm |
  148. eduardo..arizona

    It means that builderswanted to make a quick buck, and they kept making houses at a fast pace. Offcourse they did that because the demand was there. But the question is, why the demand was there? well, a lot of lenders and real estate agents were not checking closely to peoples backgrounds, and they were giving credits to anyone who had a social security number. Again, wanting to make the quick buck. Now builders here in Az are filing bankruptcy, the prices are going down dramatically, small businesses are closing, people are being laid off, and finding a job that has a decent pay, at least enough to pay your bills, they don't exist. Then, banks and lenders don't care about the people, they want their money, and this provokes foreclosure on your house.

    June 5, 2008 at 5:54 pm |
  149. Jennifer in Tupelo, MS

    It means it’s getting ugly out there, Jack. Between the economy and these elections, who needs to worry about global warming? It looks like it’s already the end of the world as we know it.

    June 5, 2008 at 5:57 pm |
  150. Matt from Michigan

    I wasa mortgage guy for three years, I am loosing my rental house and this guy is spot on...It's partialy my fault and part the economy....regardless, blamming Bush for this is a joke. Greenspan left the rates to low, for to long and congress was not looking at the lenders...

    I agree 100% with this guy!

    Matt from Michigan

    million homes in foreclosure points a sad finger at our national obsession with excess.

    We don’t want to just own a home: We need to own a BIG home.

    We don’t want just a TV: We need a 48″ plasma TV.

    We don’t just want a car: We want a gas-guzzling, checkbook-draining status symbol.

    And when our finances finally get stretched and pulled too far, we don’t want to just fess-up,admit our gluttonny, and tighten our belts: No, we want to blame George Bush and the rich-people-loving Republicans.

    Spend like Democrats, then blame the Republicans for our self-imposed financial problems.

    I wonder how Obama plans to change that!

    June 5, 2008 at 5:59 pm |
  151. Harold from Anchorage

    It shows that "trickle down economics" really means tinkle-down on the middle class.
    The GOP has been putting to the middle class for way too long; and yet that very group has kept them in power.
    Duh....

    June 5, 2008 at 6:01 pm |
  152. AndyZ Fairfax, VA

    It means that the Bush Administration, in conjunction with the neocons, has successfully redistributed the wealth of this country.

    June 5, 2008 at 6:02 pm |
  153. Nancy, Tennessee

    It means more people will be renting U-Haul trucks and moving, but not up. George Bush's things will soon be sent across country back to Texas. Whew, am I glad. The sad part is that he didn't move out of the White House soon enough and now millions more are having to move too. Should have invested in some Mayflower stock.

    June 5, 2008 at 6:03 pm |
  154. Joe

    Its means we are in a "DEPRESSION," and people of the Congress is ignoring it as our future President of the United States of America, BARACK HUSSIAN OBAMA and or JOHN MCCAIN.

    Joe (Elkhart, Indiana)

    June 5, 2008 at 6:06 pm |
  155. DieHardDemo

    I hate to say it, but this is nothing more than the entitled members of the DNC finally figuring out that they really weren't entitled to the house that they couldn't possibly afford. Of course, they can always hope that Obama will bail them out in exchange for their votes in november. That would be keeping with the Democratic ideal that we are entitled, but not necessarily expected to work or live within our means.

    June 5, 2008 at 6:07 pm |
  156. robert

    this shows that the lenders were so caught up in making money from people who they probably knew would not be able to afford the mortgage payments in the long run, it's the greed from the lenders and the uneducated buyer to blame for the housing crises.

    June 5, 2008 at 6:09 pm |
  157. Ron H., North Carolina

    I have one feeling about the foreclosure crisis....This is scary.

    June 5, 2008 at 6:11 pm |
  158. Adam Gibson

    It means we need a new and competent president, Jack.

    June 5, 2008 at 6:11 pm |
  159. M. Green

    It means that George Bush is STiLL president!!!

    June 5, 2008 at 6:12 pm |
  160. Elle

    It means that Dame Edna's now officially in better shape than the ecomomy. Never thought I'd live to see the day.

    June 5, 2008 at 6:12 pm |
  161. Paul Doherty

    Here in Las Vegas the "Flippers" are being flipped! Good time to buy if you can qualify..

    June 5, 2008 at 6:13 pm |
  162. od, canada

    the federal government has to come up with another ingenious idea to bail out another "bear sterns"....... that might help.

    June 5, 2008 at 6:13 pm |
  163. dave lamb

    It means I have to hurry and write this e-mail as the movers are taking my comput.......

    June 5, 2008 at 6:13 pm |
  164. steve

    Jack,

    It means that the scruffy faced character from Bugs Bunny cartoons asking to "help a fellow down on his luck" will be our neighbors and family members sooner than later...

    June 5, 2008 at 6:13 pm |
  165. Luke Middletown NY

    Jack, It means that American's don't know how to handle their money. The only person who is to blame are the people who take out loans they can not afford.

    June 5, 2008 at 6:13 pm |
  166. Tony

    Forget Recession, we're on a clear path to a depression with a new breed of ex-homeowners traversing the country in their vehicles looking for the jobs – the ones mostly illegals do – that once made them turn their noses up.

    The new "Oakies" are on their way. And God help us all.

    June 5, 2008 at 6:13 pm |
  167. Morpheous

    Jack,

    No problem. One million isn't much, if you live in the White House. Why bother?

    PA

    June 5, 2008 at 6:14 pm |
  168. John Cuprisin

    Jack, a million foreclosures shows that at least the war on the middle class is a going well.

    John Cuprisin

    June 5, 2008 at 6:14 pm |
  169. David Arnold

    It mean that officially AMERICA IS ON SALE- open house to all around the world who wants a piece. We all got George W Bush to thank. So consumed with Iraq that he lost sight of what was happening here at home. Mom says " charity begins at home and then ends abroad" i guess for Presdident Bush he begins abroad and ends there. John McCain seems to share his seem views.

    June 5, 2008 at 6:14 pm |
  170. J. P. - Columbus, OH

    What happens? We all lose. Even if you don't have an "alternative" mortgage, we have all lost value. For those of us who have to sell our homes for things like a new job or family emergency, its near impossible to do. This just forces more into then never ending spiral downward. The only solution is some sort of government action to force the mortgage companies to be more help than they have been.

    June 5, 2008 at 6:14 pm |
  171. Delisha

    All this has happened under Bush's watch! It means this high school teacher dontated to Obama once, donated to Obama twice and the third time will be a charm. I told people in the 2000 election and the 2004 if any middle or lower class person votes for Bush they were idiots and would live to regret it. Looks like I called it right Jack!

    June 5, 2008 at 6:14 pm |
  172. Norman

    It means we are heading for a major recession that will be unprecedented. Foreclosing on a home was once "taboo". Now, people are making conscious decisions to walk away due soley to the massive negative equity many of them face. What was once forbidden is now seen as fiscally smart despite the credit consequences. Here in South Florida, it takes a whopping 9 months just get a foreclosure filing in the courts. Many people are living mortgage free for 12-16 month in their homes. More and more people are realizing that with today's real estate market, it makes much more sense to rent.

    June 5, 2008 at 6:14 pm |
  173. Devon (Salem, OR)

    It means that there is a lot of money to made at house auctions.

    June 5, 2008 at 6:14 pm |
  174. Michael in Atlanta

    It means one more book in the legacy section of the George Bush library, right next to the coloring books.

    June 5, 2008 at 6:14 pm |
  175. Jenny

    Big trouble for us

    June 5, 2008 at 6:14 pm |
  176. Carl

    What happens in Vegas stays in Vegas, not?

    June 5, 2008 at 6:17 pm |
  177. J

    It means our government has failed to protect us from greedy ,shady, scroundrels that pray on those who were so eager to own a home that they fell fot the spiel that got them into high interest loans and then took advantage of them when they were down. Wouldn'y you think that the lenders would rather have those people living in the homes and paying whatever they could rather than having the houses sitting empty for vandals to ruin?

    June 5, 2008 at 6:17 pm |
  178. John Spiza

    Well Jack, it can only mean Jesus is coming back real soon. Who needs a house?

    June 5, 2008 at 6:17 pm |
  179. Tony Barnes

    Jack, if we have over 275 million homes in America, and only 1 million of those are in foreclosure, isn't that less than 1%. If we went high and right calling every issue that doesn't even reach 1% a crisis, we will need 100 more pessimist like you to report all the crisis.

    June 5, 2008 at 6:17 pm |
  180. Galen Wathen

    One million? The problem is GREED. $80,000 a month for Bear Sterns employees?! For 25 years we've hard that "greed is good". Turns out that even Greenspan has changed his mind about that. We all need to start re-defining America from one of excess, greed, more, over-consumption..... to one of sustainability. This housing problem was caused by a few, who made money off the detriment of the many.

    June 5, 2008 at 6:17 pm |
  181. Pauline

    It means the country has entered the "I've had it" zone. You need only to experience hardships out of your control to enter into it.

    June 5, 2008 at 6:17 pm |
  182. Andy B.

    I don't understand why we're shocked and awed over this. People in the US have long been living above their means. When a little accountability kicks in (ie. pay for the debt you've been accumulating for years), and people can't – we act as though the sky is falling. Owning a McMansion is no more a right than is making annual returns of 40% during the .com period. 1 million foreclosures means that a capitalist system works in ensuring that we don't simply get a free ride forever. Looking at the big picture over the long term, I suspect there will still be a net gain in home ownership and wealth.

    June 5, 2008 at 6:17 pm |
  183. Brad

    It means that 1 million people borrowed more than they could afford to pay back. They have no one to blame except themselves. Whatever happen to personal responsibility? Come on Jack...stop perpetuating the government-is-the-solution-to-all-of-your-problems mentality.

    June 5, 2008 at 6:18 pm |
  184. Moises Lopez

    How do I feel? Simple, I am very upset with George W. Bush's administration. He still denies that we are in a recession. We had a surplus when he took office and now we are deeply in debt. Of course he does not have to worry because he is not wearing the shoes of those facing foreclosure. I still don't know how he can go to sleep without any remorse of what is happening to these people. We have lots of money to fight a war but not to take care of our own. Shame on you Mister President.

    June 5, 2008 at 6:18 pm |
  185. Rick Peterson

    It means maybe - maybe - Washington will begin to realize just how much the American people are hurting. From the mortgage crisis to gas prices, our leaders still have their blinders on. At some point, they'll have to stop paying lip service to these problems and actually start addressing them. We can only hope.

    June 5, 2008 at 6:18 pm |
  186. sailhardy

    The 1,000,000 foreclosures (and climbing) are a direct result of consumate greed on the part of CEO's who have been nailing down obscene salaries and bonuses; banks and mortgage companies who have been peddling largely A.R.M.'s to people who do not understand that what goes up in our economy often comes down, way down; financial institutions who have set up hedge funds and who have bought and sold mortgages without the permission of the mortgage holders; to banks who do not know their borrowers and do not care about them, either; and to a Congress which is in the pay of anyone who wants them.

    We have earned a terrible recession because we have sold our country. Ours was a great country, but I hope no one buys the export of our alleged democracy.

    God save our Republic.

    June 5, 2008 at 6:18 pm |
  187. JEANNIE MCLEOD

    It means THERE'S A BIG CHANGE COMIN'

    June 5, 2008 at 6:18 pm |
  188. Vic

    With more than 1 million homes in foreclosure, and more to come, the Bush tax cuts for the wealthiest Americans must be extended as McCain says. In fact, every American receiving a stimulus check should immediately turn the check over to the richest person they know. This is Bush-McCain economics, so that jobs can be created and the economy be stimulated...at least on Wall St., if not Main St.

    June 5, 2008 at 6:18 pm |
  189. grace

    Jack –
    It means we are up craps creek with no paddles and a rickety raft – which we bought from the Village Idiot.

    While I understand other bloggers issues about people be irresponsible for some of the choices they made -they are not the only culpable people in this crisis. The pay for many jobs have not kept up with inflation, or expenses...we don't teach our children fiscal responsibility...there are many working poor who desire the "American Dream" but we pay our CEOs, Movie and Sport Stars outrageous salaries while middle class workers have lost more purchasing power so many of them not only can't keep their homes, but their sanity. If there are no consumers there will be no market...the oligarchs better get a clue...what is happening to the rest of us will soon visit their back yard...barely surviving angry former homeowners are likely to start a storm in craps creek.

    GJ
    Michigan

    June 5, 2008 at 6:30 pm |
  190. D.R. Shimasaki

    Record high home foreclosures could also send a message to our foreign investors that the United States of America is in a short sale. Sale inclusive of 48 States, Alaska and Hawaii not included.

    June 5, 2008 at 6:30 pm |
  191. Mel Grossman

    What's the big question? When we bought homes in the past, there
    was a rule of thumb that no more than a third of your income could
    go toward your home mortgage payments. The realtor and bank vetted us and rejected any thought of housing we couldn't afford. I have followed that formula throughout my mortgage borrowing career. Both lending institutions and the borrowers bear responsibility for the mess they've gotten themselves into. Axiom: Buy only what you can afford and don't let any realtor/lender push you into something you can't. Mel: 75-year old home buyer of 11 homes ($18,250-$300,000) 1957-2007, who never missed a payment nor lost a home regardless of income.

    June 5, 2008 at 6:31 pm |
  192. Marion

    It means we definitely need a "Yes we Can" and soon.
    Hawaii

    June 5, 2008 at 6:31 pm |
  193. Bruce - Malaysia

    Most , but not all, have called it correctly, people biting off more than they could afford. Also, do not forget that under Carter, lenders were coerced/forced by the government to lend in high risk areas to high risk borrowers. This practice was "strengthened" under Clinton. Many of the anti-Bushers are blinded by their hatred of Bush they don't look at the facts.

    June 5, 2008 at 6:32 pm |
  194. Jim Johnson

    Stop having the Oil producting Nations buying our debts, open the big oil field off the shore of Alaska and refigure how oil can be priced to show its cost of $3.00 a barrel in Saudi Arabia and $5.00 a barrel in Alaska. Forget the threat of pricing barrels of oil in Euro's. Lets not let the American people be taxed to pay other worlds debts.

    June 5, 2008 at 6:32 pm |
  195. Kim, Dodge City, Kansas

    It means that the glutony and greed that our society thrives on is about to bite us in the butt, big time. Developers over develop, banks over extend to people with poor credit histories, predatory mortgage brokers prey on the un-wary and un-informed public and the Fed encourages and fuels all of this with reckless financial policies. What did we think would eventualy happen? Most people that are in trouble took out high risk loans and gambled in a game they were ill-suited to play in. Real estate speculation is not for the amature or those who can't, or don't, read every word of their contracts and understand the risks they are exposing themselves to.

    June 5, 2008 at 6:33 pm |
  196. Bill Boccalatte

    The answer is simple. Change the banking system in the United States from British to American.

    June 5, 2008 at 6:33 pm |
  197. Frank

    Jack,
    My question is to John McCain. I want to know which economy J.M was refering to as GREAT OR WORKING. If the forecosure of one million homes is part of that "GREAT" economy then we are are in for great trouble in McBush third Term. The people of Arizona should send McCain a message in November by delivery the state to the democratic party.

    Frank
    Lynchburg, Va

    June 5, 2008 at 6:33 pm |
  198. Hal Powers

    When Dorothy returned from Oz and woke up back in Kansas, she said "There's no place like home." If she were to land again today she would see an American scene more Oz-like than the fairy land of the Wizard when considering the number of our street people, the devastation of Katrina, the implosion in the housing market and the present barrage of tornadoes, and she probably would say: "There's no place....

    June 5, 2008 at 6:34 pm |
  199. Roy from Tacoma WA

    Why should anybody be surprised that when you put the Fox in charge of the henhouse, hens start disappearing?
    Still President Bush and company don't like any type of regulation and for the last seven years have gutted and marginalized the parts of government which might have prevented this.
    It reflects the status of our entire economy which has been repeatedly looted and manipulated by the superrich.

    June 5, 2008 at 6:34 pm |
  200. MLane

    It means President Bush was not ready on day one.

    June 5, 2008 at 6:40 pm |
  201. Alan, Buxton, Maine

    It means that a lot of bottom feeders in the lending market conned a lot of gullible people to borrow more money than they could pay back. There should be a special prison for such crooks!

    June 5, 2008 at 6:41 pm |
  202. Lynwod Jones

    If Germany had only coal based petroleum in WWII – seems to me that a 70 year dependence on "drilling for oil reserves" only is a large DC crime – oops forgot they are smarter than me again!

    June 5, 2008 at 6:41 pm |
  203. Nancy Columbus, MS

    Foreclosure generally means a house was bought above one's income level. Too many Americans for too long lived by the mottor "I want it and I want it now even if I do not have the Money". Credit cards are maxed out by many of the same people who are being foreclosed on at this time. Moral – Live within your means and pay as you go.
    Debt creates more debt.

    June 5, 2008 at 6:43 pm |
  204. Barbara-Ohio

    This is what happens when the fox guards the henhouse. The Bush administration believes that the lending companies can police themselves and greed took over just as it did in many other big businesses. In my opinion, this act alone is one of the most unpatriotic thing anyone can do to our country.

    June 5, 2008 at 6:44 pm |