The American Dream is.... The picture that most Americans get with this notion is owning a charming home, perhaps with a white picket fence, maybe with two cars in the drive-way. Americans are obsessed with their homes and their automobiles. The dream of many Americans is having it all. This vision may be evaporating before our eyes due to the federal buyout and the economy.
The economic situation seems a little worse each day. Reading the headlines is a scary way to begin your day. The stock market this week took the largest dive in its history. Banks are failing and people are pulling their money out to hide it under their mattresses. Talk of credit crisis have many Americans questioning whether they will be able to achieve that great American dream of owing their own home. Homes were already difficult to sell in the current market, but now they will be even harder to buy.
My 23 year old daughter just purchased her first home this January. Even though she had never had a car loan, or other credit, she was approved for a home loan at that time. I have a feeling that she would have problems getting that same mortgage today, given the same set of circumstances. This American dream for many young Americans may be delayed due to the recent events in our economy.
The American dream for many people has also included the ability to live a little better than their parents lived. This has been achieved by most all Baby-Boomers whose parents lived through the Depression. Today, we enjoy a standard of living that our parents could not fathom. Is that standard of living legitimate, or has a nation that lives on credit distorted our perception?
What will happen to the Americans who bought homes on easy credit that they could not afford. The banks were all too happy to extend credit for these over inflated priced homes. Now those people can't make their mortgage payments, and the banks are in trouble. Will the federal government go ahead with the $700 billion buyout? Will those home owners get to keep their piece of the American dream? Will their loans be adjusted or forgiven? Will the value of their home and mine continue to decrease in value?
These are all questions that we can ponder, guess, discuss, or cuss, but we must wait to see how everything plays out. Is the American dream still attainable, or will we have an economic correction that will make it just a dream for many Americans?
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2 comments:
I asked my daughter what she thought about the American dream, and she agreed that owning your own home is what is means to most people. It was her first goal after graduating from college. Even though her home is quite modest, she is proud to call it her own (with only 351 more payments).
I've thought about selling my home, but in this housing market, I made the decision to stick with it. I wonder how many others are out there who are afraid to put their homes on the market because of plummeting housing prices.
Bill
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