THE GREAT DEPRESSION VS. THE CREDIT CRISIS: CHAOS & OPPORTUNITIES RICK TOBIN
of interest charged on the mortgage, the goal was to
try to make the monthly payments more affordable
one way or another so that there wasn’t a giant flood
of foreclosures causing havoc to home values across
America.
3.) The Civilian Conservation Corps (CCC):
The CCC was created by President Roosevelt back
in 1933 to try to help reduce the massive 25%
national unemployment numbers. This work relief
program helped employ many struggling Americans
2.) The Home Owner’s Loan Corporation
by way of building many public works programs
(HOLC):
related to parks, roads, buildings, and trails across
This agency was created back in 1933,
or just one year after the start of the “Bank Runs”
in 1932. There was also a flood of foreclosures
during “The Great Depression” years just as we
have all seen nationwide during the ongoing
“Credit Crisis” years. The HOLC loan programs
the USA.
In
recent
years,
the
unemployment
or
“underemployment” figure estimates for Americans
has varied between 8% and 20%+, according to
various financial analysts and economists.
were allegedly designed to help provide existing
homeowners with the option to refinance short
term mortgage loans into more affordable longer
term loans in order to try to reduce the high
number of foreclosures.
Who
really
knows
the
actual
unemployment
numbers? Regardless, the projected annual median
household income has fallen in 2013 as compared
with back in 2007 or 2008. Where are today’s “New
Deal” jobs programs which may help employ more
In many ways, the HAMP (Home Affordable
Modification
Program)
and
HARP
(Home
Americans, and hopefully increase existing wages for
more people as well?
Affordable Refinancing Program) loan options
seem a bit reminiscent of the old HOLC programs
back in the 1930s. All of these financial acronyms
which begin with the letter “H” were supposedly
designed to help existing homeowners to remain in
their homes by reducing their existing monthly loan
payment options.
Whether it related to increasing the loan term from
five (5) years to 30 years or by reducing the amount
Many years from now
well into the future,
we may look back to 2014
as a year in which
the positive investment
opportunities far exceeded the
negative investment options