Welcome!

Java IoT Authors: Elizabeth White, Zakia Bouachraoui, Liz McMillan, Yeshim Deniz, Pat Romanski

Blog Feed Post

Housing Crisis and Lower Income Home Owners

Finally the other shoe drops. On the front page of Monday’s USA Today, research done by Harvard University’s Joint Center for Housing Studies discovered “Homes that cost less hit the hardest.”

The article details the fact the lowest price homes in markets all across the US have experienced price drops greater than homes which cost more. This is no surprise and it is the natural consequence of artificial incentives instilled into the housing market by the Community Reinvestment Act originally signed by Jimmy Carter, and subsequently updated in the Gramm Leach Bliley Act signed by Bill Clinton. The latter reduced regulation of banks, opened the door for more and bigger bank mergers, and repealed the Glass Steagall (which allowed banks to offer commercial banking and investment banking services simultaneously – a substantive cause of the recession and subprime crisis).

The article lays out the facts of the recent and current housing situation for lower income earners, but does not connect the dots. First, prices of lower priced homes increased faster and to a greater degree than higher priced counterparts. In other words, lower income buyers paid more for their homes when they purchased them. The fact that prices rose and fell so dramatically, indicates greater amounts of debt were used to purchase the lower priced homes than more expensive ones. Further deduction suggests that more low priced home owners are now “under water” as prices have fallen below the mortgage amount contracted for. What follows, and the article points this out, is that greater numbers of foreclosures have take place for (former) owners of lower priced homes.

Summarizing, “policy” allegedly designed to help lower income Americans actually hurt them at each and every stage of their home ownership journey. They paid too much, borrowed too much, at rates too high, then had the rug yanked out from under them when home prices fell, causing a poor economy, followed by extensive job losses and ultimately foreclosures. Those who have hustled to make their payments, have homes worth drastically less than when they paid, and now these folks are being harassed by banks who are under government thumb after receiving bailouts. If I were in this situation…(and you would be too).

Here’s the point, which the article omits: The only way to get ahead and stay ahead is to work and save some capital. Then use the capital, while continuing to work personally, to invest and earn additional capital. Gifts, handouts, artificial incentives, and the like, while politically expedient, just create more hardship for the intended beneficiaries of the largess. These needlessly expose them to poor decisions for their part and cruelly subject them to being taken advantage of by unscrupulous charlatans. The only sound way to improve one’s life is through one’s own effort – anything else really screws things up. BTW, I have lived this lesson first hand, as Debra and I were homeless six months into our marriage in 1988 – but that’s another story.

Community Reinvestment Act information.

Read the original blog entry...

More Stories By Dana Barfield

Dana is the president of The Barfield Group, which has provided industry leading Financial Advice, Investment Services, and helped people Plan for Retirement for more than 20 years. He is a frequent speaker and writer for a variety of industry, regional, and national publications on business ownership and wealth building related topics.

IoT & Smart Cities Stories
In his session at 21st Cloud Expo, Raju Shreewastava, founder of Big Data Trunk, provided a fun and simple way to introduce Machine Leaning to anyone and everyone. He solved a machine learning problem and demonstrated an easy way to be able to do machine learning without even coding. Raju Shreewastava is the founder of Big Data Trunk (www.BigDataTrunk.com), a Big Data Training and consulting firm with offices in the United States. He previously led the data warehouse/business intelligence and Bi...
Cell networks have the advantage of long-range communications, reaching an estimated 90% of the world. But cell networks such as 2G, 3G and LTE consume lots of power and were designed for connecting people. They are not optimized for low- or battery-powered devices or for IoT applications with infrequently transmitted data. Cell IoT modules that support narrow-band IoT and 4G cell networks will enable cell connectivity, device management, and app enablement for low-power wide-area network IoT. B...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and sh...
What are the new priorities for the connected business? First: businesses need to think differently about the types of connections they will need to make – these span well beyond the traditional app to app into more modern forms of integration including SaaS integrations, mobile integrations, APIs, device integration and Big Data integration. It’s important these are unified together vs. doing them all piecemeal. Second, these types of connections need to be simple to design, adapt and configure...
Cloud computing delivers on-demand resources that provide businesses with flexibility and cost-savings. The challenge in moving workloads to the cloud has been the cost and complexity of ensuring the initial and ongoing security and regulatory (PCI, HIPAA, FFIEC) compliance across private and public clouds. Manual security compliance is slow, prone to human error, and represents over 50% of the cost of managing cloud applications. Determining how to automate cloud security compliance is critical...
Contextual Analytics of various threat data provides a deeper understanding of a given threat and enables identification of unknown threat vectors. In his session at @ThingsExpo, David Dufour, Head of Security Architecture, IoT, Webroot, Inc., discussed how through the use of Big Data analytics and deep data correlation across different threat types, it is possible to gain a better understanding of where, how and to what level of danger a malicious actor poses to an organization, and to determ...
Nicolas Fierro is CEO of MIMIR Blockchain Solutions. He is a programmer, technologist, and operations dev who has worked with Ethereum and blockchain since 2014. His knowledge in blockchain dates to when he performed dev ops services to the Ethereum Foundation as one the privileged few developers to work with the original core team in Switzerland.
Digital Transformation and Disruption, Amazon Style - What You Can Learn. Chris Kocher is a co-founder of Grey Heron, a management and strategic marketing consulting firm. He has 25+ years in both strategic and hands-on operating experience helping executives and investors build revenues and shareholder value. He has consulted with over 130 companies on innovating with new business models, product strategies and monetization. Chris has held management positions at HP and Symantec in addition to ...
Cloud-enabled transformation has evolved from cost saving measure to business innovation strategy -- one that combines the cloud with cognitive capabilities to drive market disruption. Learn how you can achieve the insight and agility you need to gain a competitive advantage. Industry-acclaimed CTO and cloud expert, Shankar Kalyana presents. Only the most exceptional IBMers are appointed with the rare distinction of IBM Fellow, the highest technical honor in the company. Shankar has also receive...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities - ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups.