great for wall street and the wealthy, nots so great for 90% of america on main street where the unemployment market remains in neutral. absolute employment remains at an unacceptable high, and the housing market is utterly inside-out. the worst of it is there s an undefined threat that s still to come, and the bankruptcies we ll be talking about soon will not be of individuals or of companies, but when you let somebody else off the hook by taking their debts as the american government did with the banks? guess who goes bankrupt next? the government. we re breaking it down with the author of end game. john, as easy fix was just to transfer all of the debt from the corporate world, from the private industry, into the government. why is that such a bad idea?
can t pay their mortgage, so, until we see dramatic, steady improvement in the unemployment market, we re not going to see dramatic steady improvement in housing, now, there are some bright spots and there is some positives in the housing market. i think 2011 will see some dramatic increases in investor opportunities, we ve already seen that in 2010. and houses that for a long time having, are, and there will be an influx of cash and capital in the market. until we get people who are buying to live in homes, back into the market in force, that s when we ll see a major, dramatic recovery. you and i both know, one of the big problems of course is the ability to get the loan modifications and people say, hey, we want the value of our house down to acceptable level so we can stay here, are we going to see an up tick in loan modifications for folks? you know, clayton, i think we will and we already have. we ve start today see a serious increase in how many permanent modifications have g
our paychecks. if you re making $80,000 a year, that s $1,600 and you re not going to get that in a lump sum. it will be added back into your paycheck on a byweekly or monthly basis. that s good news. the government wants us to spend that and stimulate the economy and if you do have debt and you have a savings hole that you want to use that tax break to fill up that whole. if you re also worried about losing your job, hard to geout there and spend that money. the forecast for unemployment market in 2011 is not that great. some improvement, but it s going to be slow and the projection is that we re still going to have an unemployment rate in the 9% range. automated savings to help pile up your money. are you talking about a 401(k)? everything from your 401(k) to your personal savings account like an online checking account. i want people to automatically detect a percentage from each paycheck into those separate accounts. it s painless that way.
reporter: these are shocking numbers. the president s program to make housing affordable for everyone who is having trouble paying the mortgage, it has not been successful. 75 percent of the people have gotten into the program have droppeddous dropped out because the payments are too high. the president s man is not successful, bush s plan is not successful. shepard: did we have a sense of what is behind the increase? reporter: this reflects the unemployment market. sit shocking. that is what pushed the dlin qeapses through the roof how they bump up in 2010 higher than ever before. shepard: any sign of recovery? we look for anything? reporter: we have to see better enemployment numbers that
job. wouldn t you want that job? not since world war ii have we seen this. they just want a job. any job, pretty much. they want a job. look at the repercussions of this. with the youth out of work we ve got more of them moving back home, more of them delaying getting married which studies show is good for your pocketbook and finances. some folks are calling this a lost generation. once you start behind the starting line where everyone else started let s say in 07, you will always be behind. this may be a whole generation of young americans that will always fall behind because you build your salary on your previous salaries. they re going to fall very far behind. you make a great point. it also affects the family. if you don t get a job you ve got to move back home with your mother, father, they have to xp a lot of unpaid internships, too. and student loans. thank you very much. an interesting trend, a part of what s happening with the unemployment market out there.