The economy has slowed down from it’s outright free-fall in 2009. Although there has not been a rebound in jobs we have seen a slowing of layoffs and a rise in consumer confidence. The remaining question out there is “Is the Mortgage Crisis Over?”. Honestly the fed is saying we are in the clear but what else could you expect them to say. To speak the truth about anything negative seems to get an immediate reaction from Wall Street. It seems that the politicians are highly sensitive to doing anything to the point where they are slammed if they say anything negative. It seems to be regarded that affecting wall street is not acceptable but wall streets effect on the average person is more then accepted, in fact accepted to the point that the American tax payer has to make up for wall streets short comings. I will digress from going into the way this country is now run by corporations and instead focus on the mortgage problem itself. Many claim that the median housing price has fallen around the country the lack of a dramatic decrease in home prices in California is due to the fact that everyone wants to come to California.
California is unlike any other place on the earth, at least in my humble opinion but I could be biased seeing as how I have been a California native since 1978. Recently the housing prices in California have gone absolutely nuts. The actually period where housing went crazy would tend to be around 2001. Prices rose at such an astounding rate and the advent of companies such as New Century, Countrywide and Option One who specialized in mortgages not seen in the industry prior to this point led to rapid fraud and escalation of housing prices in California.