Business across Island feeling mortgage crisis squeeze -

Full story: Newsday

Business owners across Long Island have long depended on the cash flow of the local consumer.
Comments
1 - 12 of 12 Comments Last updated Dec 9, 2007
Mary

Astoria, NY

|
Report Abuse
|
Judge it!
|
#1
Nov 12, 2007
 
And these mortgage companies were still advertising up to two weeks ago. Blame it on the fed government who should have been regulating them. Now all the municipalities will feel it soon in decreased tax revenue and maybe then something will be done by the federal government.
Ed Burke

Coram, NY

|
Report Abuse
|
Judge it!
|
#2
Nov 12, 2007
 
The "House Flippers" ran out of people stupid enough to pay more for the shacks than they did. This is simply a return to sanity, and realistic house prices. The Ponzi schemes always have a limited lifespan, this one was no different. It's a good thing.
ryan

Richmond, VA

|
Report Abuse
|
Judge it!
|
#3
Nov 12, 2007
 
Its a shame that middle class families are being put through this. LI really needs to try and establish a stronger middle class. They spent years pushing them out and forcing the middle class (like myself) to move to cheaper states. What happened to the good old days when a man could work 9-5 and the wife could stay home with the kids all while living in a modest neighborhood.
LongIslandLost

Coram, NY

|
Report Abuse
|
Judge it!
|
#4
Nov 17, 2007
 
Ryan is right. But, there is a silver lining. As house prices fall, the middle class can afford to live on Long Island again.

“www.longislandbu bble.com”

Since: Jan 07

Long Island

|
Report Abuse
|
Judge it!
|
#5
Nov 20, 2007
 
LongIslandLost wrote:
Ryan is right. But, there is a silver lining. As house prices fall, the middle class can afford to live on Long Island again.
Not really; the long island economy has many more problems and the taxes will not come down much due to swelled budgets.

This is only the tip of the iceburg; it's going to get much worse.
Cursed Seed of Canaan

Herndon, VA

|
Report Abuse
|
Judge it!
|
#6
Nov 21, 2007
 
Everytime I come home I see all of these relatively young people with not-so-great jobs driving Hummers, watching 50" plasmas, and having first communion parties that make my wedding reception look small. I guess all that money came out of their houses, no? Sure didn't come out of working for most people I know, because they are all blue-collar and could barely keep up until the bubble inflated. Either that or they are stealing.
CrazyGQ

New York, NY

|
Report Abuse
|
Judge it!
|
#7
Nov 21, 2007
 
Mary wrote:
And these mortgage companies were still advertising up to two weeks ago. Blame it on the fed government who should have been regulating them. Now all the municipalities will feel it soon in decreased tax revenue and maybe then something will be done by the federal government.
The state goverment was regulating them, problem was there is no law against the unending stupidity of people.
allen

Selden, NY

|
Report Abuse
|
Judge it!
|
#8
Nov 21, 2007
 
The LI property tax problem is about to get silly. Homes were appreciating 15% or more for the last 5 years. Property taxes were increasing rapidly as well. People weren't complaining early on when their house was increasing 50K-100K a year and their taxes were increasing $750-$1,000 per year. Now with property values evaporating the annual increase in taxes will make your eyes open up. Average property taxes on LI in a decent areas are 1.25-2.0% of property market values. So with a few flat or declining years of property values and the average 4-6% increase in property taxes we are going to see property taxes of 1.75-3.0% of property values. Just because your house will decline 15-20% in value doesn't mean your town will be able to cut budgets and taxes 15-20%. So we are bound to see increased taxes while property values decline or stagnate and therefore the ratio of property values/property tax is going to increase even more.
GakiPataki

Hampton Bays, NY

|
Report Abuse
|
Judge it!
|
#9
Nov 23, 2007
 
Yes, sounds like we are headed for a recession. Everything is going up except house values and salaries. we need to raise the minimum wage to at least $20/hr, so folks at McJobs can get a little piece of the american dream. The CEO's need their million dollar salaries cut by 90% and distribute that share to their hard working minimum wage employees. if it werent for the employees, the multi million dollar corporations would cease to function.

“www.longislandbu bble.com”

Since: Jan 07

Long Island

|
Report Abuse
|
Judge it!
|
#10
Nov 24, 2007
 
GakiPataki wrote:
we need to raise the minimum wage to at least $20/hr
Are you kidding? We don't need the minimum wage to increase. All that will do is increase inflation some more! Do you want to see $20/gallon milk?

What we need is DEFLATION!

So far that is happening with housing, but unfortunately we are seeing inflation of the money supply as well.
Outta Here

Brooklyn, NY

|
Report Abuse
|
Judge it!
|
#11
Dec 4, 2007
 
This is STILL the tip of the iceberg. The Federal Reserve is inflating the money supply causing rising prices, while other assets like home values are deflating. It's the Perfect Storm, economically speaking.

We here on the island will see our property taxes skyrocket because local governments and school boards have no clue how to reduce costs,like a business does. They don't have to, they have no competition.

I predict it will get really ugly when unemployment rears its ugly head.
acc

Brooklyn, NY

|
Report Abuse
|
Judge it!
|
#12
Dec 9, 2007
 
The Government is rapidly expanding credit via agencies such as Fannie Mae, Freddie Mac, and the FHLB since the private market for packaged mortage securities is now dead and probably buried for the foreseeable future. As usual, the consequences of this debacle are to be shared by all taxpayers, assuming that the Government continues to stand behind these agencies. While private businesses like those in this Newsday article will likely suffer, the business of government will go on pretty much as usual, with salary raises every year regardless of the overall economy.

Tell me when this thread is updated: (Registration is not required)

Add to my Tracker Send me an email

Add your comments below

Characters left: 4000

Please note by submitting this form you acknowledge that you have read the Terms of Service and the comment you are posting is in compliance with such terms. Be polite. Inappropriate posts may be removed by the moderator. Send us your feedback.

Middle Island Discussions

Title Updated Last By Comments
NY Who do you support for Governor in New York in ... (Oct '10) 5 min Moutainman 6,406
Slime Bags (May '12) 12 min Busted 9
Brady is silent on MBV Audit 40 min hoo doo you think... 14
Ground Spraying for West Nile in Rocky Point Se... 43 min Erin 1
bruce and maura are useless 55 min Incompetence 65
Crier by Bruce 1 hr Beach Man 2
Dans Horse dead farm (Aug '13) 5 hr Lou 77
•••

Middle Island News Video

•••
•••

Middle Island Jobs

•••
Enter and win $5000
•••
•••

Middle Island People Search

Addresses and phone numbers for FREE

•••

Middle Island News, Events & Info

Click for news, events and info in Middle Island
•••

Personal Finance

Mortgages [ See current mortgage rates ]
•••