Aug 10
5
The Washington Post isn’t the only place where people have noticed that despite the current economy, people are not in a position to just up and move to a new city in hopes of better opportunities:
Many economists believe that a significant number of workers will have to move before the employment picture substantially improves.
But workers have proved unwilling — or unable — to relocate. The biggest factor seems to be the large number of unemployed homeowners who have little or no home equity.
This graph should put things in perspective: just about anybody who bought in the last 10 years is underwater, and things may get worse — which some economists think will put us back in a recession (if you in fact believe we really ever got out of one). This is another argument in favor of allowing bankruptcy judges to “cramdown” mortgages.
But here’s a fellow who sees potential good in our underwater home trap:
Out of nothing more than self-preservation, those people will come up with something—maybe the next Zappos or something equally huge?—to get us out of this jam. More important, though, is the part that will come: recovery. And, yes, there will be one someday.
Finding a way out of this mess, he argues, is likely to form a greater sense of community.
Be sure to come back tomorrow afternoon for Friday Figures!
