Sunday, June 7, 2009

Flood of Foreclosures

House prices are falling due to a flood of foreclosures. As more people lose jobs they can't make mortgage payments and are thrown out on the street. Foreclosures move upscale as even rich are hit with unemployment.

Truly, any semblance of stability is gone. People who once felt secure find that their years of hard work and promotion in a company now make them targets. There is a move to close US factories as well as offshore and outsource high paying high skill work.

Few understand how fundamental the shift is. The value of a college degree drops when you can get a guy in India to do the same job for less than 10% of an american. In fact, using the internet it is possible for a firm to outsource most of its back office work.

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