“As goes the middle class…”

The trickle down effect at work:

http://www.northjersey.com/news/business/Foreclosures_among_owners_of_million-dollar_homes_on_the_rise.html

Yep, foreclosures of million dollar homes.

If it happens to the middle class, then it can happen to anybody.  Even the rich.

In this case, people stop planning fancy parties — I imagine a lot of the accounts were corporate ones. And that’s one of the first things a business cuts when times get rocky financially.  They’re not all tax write offs.

4 thoughts on ““As goes the middle class…””

  1. The trickle down effect is going to hurt more and more people because when people can’t afford to buy things then the companies go out of business and the owners suffer and then the people they buy from suffer and on and on. I watched something on this awhile back on the news and it showed how one person losing their jobs affects several people and could cause SEVERAL job losses.

  2. Another case in point that more or less affects the middle class and vendors:

    Here’s another article in yesterday’s paper. Bars, restaruants, etc at the Jersey shore said buisiness this year was terrible.

    The prices also have gotten too too high for families and middle class people: five bucks for pizza? 6 and a quarter for a beer? One of our favorite lunch places down there just went high end.

    The shore was always an inexpensive fix for a family vacation. It’s a small fortune to rent a shore house for the week — unless you’re going in on it with 10 people, then it’s worth your while.

    Again, the trickle down effect.

    As goes the middle class.

  3. The boardwalk in Atlantic City has been importing their summer workers rather than hire locals for at least five years. It was kind of interesting to see the Russians move in, but they might have gotten to Indians or another ethnic group by now.

    Your risk of foreclosure is proportional to at least two things: how leveraged you are and how stable your job is. Lots of people rely on two large paychecks to carry a house. Lose one job, and you’re probably down the tubes.

    Even in places where housing is supposed to be cheap, like southeastern Colorado, you can spend a surprisingly large amount of money on housing to get into a good neighborhood or the right school district.

    Anchoring, or what we think that things should cost, is a big problem for a lot of people. There might be more money in going high(er) end than serving cheaper food to hold the line on price, which is getting more and more difficult to do and still meet people’s expectations. One of the better deals in Las Vegas is the steak and shrimp special for $7.77 at the Hard Rock Casino at Mr. Lucky’s, a sort of diner that they have there. I was pleased that they had replaced the chuck steak with a piece of ribeye steak and still had the same price. The dish isn’t on the menu. You have to know to ask for it. You get a 6 ounce steak, a skewer of three broiled shrimp, salad, and your choice of french fries, mashed potatoes, or broccoli.

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