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Source link: http://archive.mises.org/21407/friday-links-the-church-bubble/

Friday Links: The Church Bubble, The Employment Trough, Sachs at World Bank?

March 9, 2012 by

It turns out Hillary Clinton was serious. She’s really not trying to get in at the World Bank. Jeffrey Sachs, on the other hand

Banks are foreclosing on Churches in record numbers. The causes are very familiar:

During the property boom, many churches took out additional loans to refurbish or enlarge, often with major lenders or with the Evangelical Christian Credit Union, which was particularly aggressive in lending to religious institutions.

Then after the financial crash, many churchgoers lost their jobs, donations plunged, and often, so did the value of the church building.

Meanwhile, “Foreclosures and other distressed properties account for more than a third of all home sales.”

Not surprisingly then, the National Association of Realtors reports that “Housing affordability at all-time high.” (NAR’s advice: There’s never been a better time to buy!)

The Financial Times reports that 2011 was the first year in decades without the opening of a new U.S. Bank.

If there’s a question about the lack of demand for purchase homes right now, one need only look to the jobs data. In today’s employment report, a “third solid month” of employment growth is reported, yet, total employment continues to be way down:

Some 43 percent of the 12.8 million unemployed Americans had been out of work for more than 6 months in January, the latest Labor Department data on the long-term unemployed. In all, nearly 24 million people are either out of work or underemployed. Those people aren’t out of work for lack of trying: there just aren’t enough jobs to go around. For every opening, there are four unemployed workers who need a paycheck.

Total employment numbers are still comparable to 2001 levels.

And we’ll definitely be needing taxpayers to work more, because the U.S. government will be shelling out at least $5 trillion over the next decade, just to pay interest on the debt.

{ 2 comments }

Larry N. Martin March 9, 2012 at 10:53 am

Anybody want to buy a church??

Ken Zahringer March 9, 2012 at 2:18 pm

Not surprisingly then, the National Association of Realtors reports that “Housing affordability at all-time high.” (NAR’s advice: There’s never been a better time to buy!)

Have they ever given any other advice?

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