Distressed Homes and Layoffs

Inquiring minds are looking at the data for distressed housing and the way people are being laid off now which makes us wonder how home prices are not going to decline much more in The OC.

In California, the discounted percentage difference between average sales price of foreclosure sales vs. average sales price of non-foreclosure sales is 39%. This is much higher than the national average of 28% and ranks California as 3rd nationally. Further, this broke down to 46% for bank-owned properties to 29% for homes sold before lenders seized a property, aka short sales.

Remember that these numbers are the foundation of the market going into 2011 where we are beginning to see layoffs and large budget cuts in local and, eventually, state governments. This will only exacerbate the housing crisis across the all of California.

However, these dry housing statistics mean nothing to what SurvivingCalifornia.com hears of how United Healthcare laid off their Orange County, CA employees on Thursday…

Things stated off regularly as people reported to work as usual and they started in on their schedules. Supervisors came around and told everybody to get on the buses parked outside because they were going somewhere offsite for an important meeting. When they got to the remote location, a speaker came on to tell them their service was no longer needed and they were now laid off.

What effeciency! This explains so much of their insurance claims process, doesn’t it?

Unfortunately, this is vivid proof that housing prices are not only NOT rebounding but are not even stable. We are going to see large declines in the upper scale areas. Orange and San Diego Counties for sure. Look for it to be a double-edged sword as buyers become more scarce just as housing prices decline. Bubbles don’t burst while buyers are still in the market which is what analysts were attempting to convince the public of two years ago. Having many active buyers still in the market just means the bubble was not allowed to fully deflate and is still a bubble.

Hold on because you ain’t seen nothin’ yet. Politically, 2011 looks to be even more crazy then 1968. And SurvivingCalifornia.com is still predicting that the state of California will end up with an apocalyptic 17% rate of foreclosure when everything is said and done. It is what the data shows.

To put this into prespective, the worst foreclosure rate in state history prior to this downturn was in the early 90’s when it was 6%. We are talking almost three times the rate.

Spain Sets All-Time Record

Inquiring minds are upon the Iberian Penninsula where the Spanish have just set a record:

Unemployment in Spain has reached a new all-time record in February with an increase of 68,260 compared to January, bringing the total number to 4.3 million, the worst figure since 1996 when unemployment statistics began. Compared to last year, unemployment has increased by 168,838 (+4.08%), according to figures revealed today by the Labour and Immigration Ministry. The number of jobless increased in all sectors in February, including services (+1.6%), industry (+0.71%), construction (+0.34%) and agriculture (+6.67%).

Wasn’t Spain supposed to be the cradle of Green Technology and a hotbed of ‘green’ jobs?


Providence…The Shape of Things to Come?

Teachers should be well acquainted with the "Free Lunch" program.

Inquiring minds are looking at what transpired in Providence late last week where the school district decided to send out dismissal notices to every one of its 1,926 teachers, an unprecedented move that has union leaders up in arms.

Supt. Tom Brady wrote that the Providence School Board on Thursday will vote on a resolution to dismiss every teacher:

In an e-mail sent to all teachers and School Department staff, Brady said, “We are forced to take this precautionary action by the March 1 deadline given the dire budget outline for the 2011-2012 school year in which we are projecting a near $40 million deficit for the district,” Brady wrote. “Since the full extent of the potential cuts to the school budget have yet to be determined, issuing a dismissal letter to all teachers was necessary to give the mayor, the School Board and the district maximum flexibility to consider every cost savings option, including reductions in staff.” State law requires that teachers be notified about potential changes to their employment status by March 1.

“To be clear about what this means,” Brady wrote, “this action gives the School Board the right to dismiss teachers as necessary, but not all teachers will actually be dismissed at the end of the school year.”

And, to no surprise, the union representative reacted like a small child:

“This is beyond insane,” Providence Teachers Union President Steve Smith said Tuesday night. “Let’s create the most chaos and the highest level of anxiety in a district where teachers are already under unbelievable stress. Now I know how the United States State Department felt on Dec. 7 , 1941.” That was the day the Japanese government bombed Pearl Harbor.

It never ceases to amaze how the unions have gotten everything they have wanted…and now that people realize there is no way to afford this fabulous party, then the union representatives always fall back to…”I am shocked to find gambling at this establishment!”

Think about this for just a moment…Providence’s school district is $40 million in the red! Everyone knows about the $14 Trillion national debt but that is only the surface.

Please see ““It” Is Scarier Than Anything Stephen King Has Ever Written

What many don’t seem to realize is that debt is pandemic across our entire country. State governments are writhing in a death dance, local governments are squealing to the Feds that they need money. School districts are underwater. Corporations and private citizens are in debt up to their necks.

To put it into one generalizing sentence: No one has any money anymore.

That is why this next year is going to be a historic year as the people of this country regain control of it. The Left doesn’t understand, even now, what they are fighting. But by the end of this year, they will.

And what happened at the schoolboard meeting?

Well, Toto, we aren’t in the 90’s anymore…

After two hours of contentious discussion, the School Board voted 4 to 3 Thursday night to send out termination notices to each of the city’s 1,926 public school teachers.

More than 700 teachers jammed a high school gymnasium to tell school officials that their hearts were broken, their trust violated and their futures as teachers jeopardized.

“How do we feel? Disrespected,” said Julie Latessa, a special-needs teacher, before the vote. “We are broken. How do you repair the damage you have done today?”

What is with teachers? The first thing they bring up is they ‘feel disrespected’. Look at these other quotes from teacher attendees:

“This is a quasi-legal power grab,” said Richard Larkin, a teacher at Classical High School. “You want to pick and choose teachers. Well, we will not be bullied.”

“I’m feeling disrespected, devalued and marginalized,” said Ed Gorden. “Termination is a career-ender. You are putting a scarlet letter on every one of us.”

Maybe since you don’t feel fulfilled in your current occupation it is time that you seek another organization to succeed in.