Unusual Foreclosure Rates Exemplify Daunting Economic Trends
For Immediate Release:
June 1, 2006
Contact: Ian Mathias, 410-864-1652, email@example.com
www.dailyreckoning.com: Unusual Foreclosure Rates Exemplify Daunting Economic Trends
Baltimore, MD: And the winner isâ€¦â€¦â€¦â€¦Indianapolis?!? A recent report indicates Indianapolis is sporting the highest foreclosure rate of any city in the United States. While many are stunned to see Indianapolis oust classically volatile cities such as Atlanta and Dallas, one expert sees this report as evidence of the â€œhollowing outâ€ of the U.S. economy. The RealtyTrac 2006 U.S. Metropolitan Foreclosure Market Report documented a staggering one foreclosure for every 69 Indianapolis homes.
â€œThe foreclosure rate in Indianapolis is a perfect example of a very unsettling American economic trend,â€ said Addison Wiggin, author of Empire of Debt and editorial director of The Daily Reckoning. â€œOverseas manufacturer outsourcing, an undereducated working class, and a housing glut have combined to produce the nations highest foreclosure rate.â€
A former agricultural and manufacturing hub, Indianapolisâ€™ gradual swing away from the manufacturing industry coupled with growth in the insurance and retail industries have put blue collar workers in a serious predicament. Wiggin believes this change could soon be mirrored in similar cities across the nation. â€œThe shift from a manufacturing economy to a service society doesn’t mean everyone who used to work in a manufacturing position will get a job in the â€˜new economy,â€™â€ said Wiggin.
Wiggin also accredits the â€œbrain drainâ€ of many mid-west cities. â€œNot only are blue collar workers losing their jobs to overseas markets, but a general lack of education puts them out of competition for what few jobs remain.â€
â€œThis is the beginning of a vicious cycle,â€ said Wiggin. â€œAs blue collar workers exhaust the resources they need to live a comfortable life they resort to credit cards and mortgages to feed their consumption. In an era of rising interest rates, this is putting many middle-income earners in a bind.â€ Wiggin sees this as yet another sign of “our long history of economic power and wealth being eroded from within.â€
Addison Wiggin is the editorial director and publisher of The Daily Reckoning, and executive publisher of Agora Financial, a multi-million dollar financial research firm and publishing group based in Baltimore, Maryland.
Brought to you by Agora Financial, and written by the New York Times best-selling authors, Bill Bonner and Addison Wiggin, The Daily Reckoning is a daily, free e-letter that weaves information about the financial world, investing and everyday life into an educational and entertaining format that has been engaging their readers for over seven years.