One: With foreclosures on the significant rise thanks to very shoddy lending practices, overextended flippers and homebuyers, excess government meddling in the mortgage process, and foolish loans extended due to massive loan pooling, there are a number of strange issues that are arising with the surge.

Examples of issues associated with rising foreclosures include blight from untended properties, danger of disease from untended pools breeding mosquitoes, squatters living within a home as if it is their place (not just sleeping there, physically occupying the house, furniture and all, until someone forces them out), and random individuals claiming to own the properties leasing them out to unwitting lessees, among other issues.

With defaulted ownership being so fragmented thanks to the packaging and bundling of mortgage securities throughout the world, there could be a very long and drawn out process associated with reckoning through all the issues. Be prepared to see more long-term vacant properties.

Two: Paul B. Farrell writes of the United States Comptroller General, David Walker, touring the country speaking out about the path to insolvency America as an entity is on. With a long list of historical federal government bail outs, a massive government debt, the increasing scope and establishment of enormous government entitlement programs with huge unfunded liabilities, and other significant moral hazard issues associated with government becoming too large of a psychological (and real life) crutch for the people, it is easy to see that the federal government has become far too extended and offered and promised far too much to far too many people. We need a change and fast people.

A word to the wise as we move forward through a likely significant crisis - do NOT count on government.

Three: Alberto Gonzalez, the rightfully embattled former Attorney General of the United States of America, exited the scene Wednesday, and not a day too early. As I have highlighted, this Bush Administration has been one of the most unscrupulous and integrity-lacking groups I have ever seen. I realize this is politics at the turn of the 21st Century. But we do not need to stand for more of the same slop from our leadership. The executive branch of the United States needs a dose of humility and now seems like no better time than any to adjust our ways. The linked article highlights the fact that even many Republicans were pining for Gonzalez’s departure. Get the liars out of the office. Now, if only Bush would quit…

Four: As new homes and condos planned throughout the last few years of the unprecedented housing boom come on line at the same time that distressed homeowners need to sell and already foreclosed homes sit, the glut of homes on the market place represents a supply larger than any seen in the last 15 years. With mortgage credit continuing to contract, there is no doubt in my mind that housing values will continue to decline substantially. The faulty credit boom led us to where we are today.

Five: In another predictable outcome of the bust that was made a guarantee via the boom, the number of professionals employed in housing-related fields is starting to peel back rapidly.

Six: Rest in peace to freedom loving filmmaker Aaron Russo, who recently passed away after a long fight against cancer. I have yet to watch his widely praised warning film, America: From Freedom to Fascism, but I plan on watching it soon and would encourage others to do the same. It is important to make a stand against the increasing scope of government intervention into the daily lives of its citizens. The crisis that we are currently facing has been sown by an expansion of government beyond where it should be and we are now facing some serious issues. In honor of Mr. Russo and others in a similar mold, Ponder This… continues to highlight the reality of the situation we currently face and remain diligent in defense of liberty.

Filed under: Politics, Social Mood, Economics, Six Packs