Because the millions of REIC jobs that have gone away simply don't count.
The mortgage brokers and agents, all the illegal Mexican builders, the hundreds of thousands of ramen eating realtors, the appraisers, the roofers, the title agents - none of 'em count according to the government. They didn't count on the way up, when the Fed should have been trying to stop the bubble, and now they don't count on the way down, when it's too late.
Why don't they count?
Because they're not salaried employees. They're simply independent contractors and agents. Or were. Now they're just unemployed. And to add to the misery, they have no jobless benefits, they can't make their mortgage payments, and they have no employable skills.
Think we have a foreclosure problem now? Just wait. And remember, anything the government tells you these days is a lie.
Experts predict ugly 2008 as housing slump drags on
The housing slump stands to exact a sizable toll on the broader economy as jobs, retail spending and credit availability could likely take a hit.
During the peak of housing from January 2003 to March 2006, the housing market helped to create 1.3 million jobs. Since then, only 500,000 of those have been lost. Another 800,000 could be on the chopping block.
Major real estate broker shuts down
A major Valley real estate broker shut its doors just days before Christmas, leaving 350 agents without a home, and about 20 salaried employees without a job. RE/MAX 2000, based in Gilbert, is closing its 13 offices around the Valley.
Mortgage industry needs more layoffs, analysts say
"We believe that employment in the industry needs to drop by roughly 30 percent over the next year to flush out overcapacity," analysts Paul Miller and Annett Franke wrote for financial-research firm Friedman, Billings, Ramsey.
Mortgage-industry employment stands at 450,000, down from 500,000 last year.
"We believe employment needs to decline by approximately 100,000 to 150,000 workers to bring employment levels in line with industry origination volumes," the FBR report said.
December 27, 2007
Posted by blogger at 12/27/2007