Discuss Detroit Archives - Beginning January 2007 Ripple effect finally being felt elsewhere? Previous Next
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Lilpup
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Username: Lilpup

Post Number: 2311
Registered: 06-2004
Posted on Thursday, June 14, 2007 - 4:49 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

It has been my somewhat oft stated opinion that the downturn of the auto industry, and domestic manufacturing in general, would affect more than Michigan. I've also griped about the shift to the 'service and entertainment' economy.

Then today I read the WSJ article on casinos (in another thread) and this on foreclosures - note the states listed after MI, OH, and IN - snowbird and/or entertainment & tourist states all.

And the attempt to decouple housing and manufacturing just doesn't work.
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Titancub
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Username: Titancub

Post Number: 50
Registered: 08-2006
Posted on Thursday, June 14, 2007 - 4:53 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

I'd say that is but one metric, plus those states housing markets were run up by investors and people over stretching themselves to get in.

Its not as if people made a big run for an interest only loan in Devils Lake, ND.

PUndits and analysts alike still call it (what MI is going thru) a 1 state recession for a reason.
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Charlottepaul
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Username: Charlottepaul

Post Number: 1113
Registered: 10-2006
Posted on Thursday, June 14, 2007 - 5:52 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

There were quite a few foreclosures here in Charlotte, NC, but they had nothing to do with the auto (or manufacturing) industry. Rather builders were giving loans to new home owners (to boost their sales) that could not afford them.
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Lilpup
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Username: Lilpup

Post Number: 2312
Registered: 06-2004
Posted on Thursday, June 14, 2007 - 7:49 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

But they could afford them at the time they purchased them - then something changed - and usually not just their interest rate
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Parkguy
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Username: Parkguy

Post Number: 50
Registered: 04-2007
Posted on Thursday, June 14, 2007 - 8:16 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

People get into awful loans that seem great up front, but when something DOES happen-- often a relatively minor thing-- their finances totally go over the edge. There is no room for any kind of problem in their monthly cash flow. And it is happening all over, not just in this area and this state. It is just that we've had more disruptions in personal finance, and they happened here first.
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Charlottepaul
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Username: Charlottepaul

Post Number: 1119
Registered: 10-2006
Posted on Friday, June 15, 2007 - 3:18 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Here is one of the articles in the Charlotte Observer describing what happened: http://www.charlotte.com/forec losure/story/57087.html and a more specific story on it: http://www.charlotte.com/busin ess/story/122125.html Nothing to do with the "manufacturing industry." Charlotte has distanced itself from manufacturing (arguably for the better) and is a big banking HQ.
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Lmr
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Username: Lmr

Post Number: 50
Registered: 03-2007
Posted on Friday, June 15, 2007 - 3:49 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

There is an article in today's St. Paul Pioneer Press about the high rate of foreclosures here in the twin cities. While the twin cities does have its share of manufacturing, most of that manufacturing is doing ok. There is only one auto plant here, the Ford plant where they build the Ranger pickups and it is closing next year (it's truly "green" manufacturing, too, since it runs off its own hydroelectric plant). The reason for the foreclosures here is that a lot of really foolish loans were made in the last few years that required no income or asset verification to people who couldn't afford the loan, and now that those loans are resetting the people can't afford the much higher payments.

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