patrick.net

The one that was really amazing was the guy that had to settle for a part-time job at Target for $9.50 an hour and he was glad to get it. Even if you had your home paid for, how could you survive in San Jose on a part time job paying close to minimum wage?

It was $9.25 per hour. Scary, for sure.

How about the lady that was making $70K and is now reduced to digging in garbage bins for recyclables?

Yikes. Lots of sad stories. :(

The guy who made 200k+/yr, in his early 50s it looks like, but ate through all their savings AND retirement savings in 2 yrs 3 months?

I guess people didn't realize that if they work for 40 years, assuming everything goes right and you want to live a similiar lifestyle, if you live another 15 years, you probably should be saving ~20-25% of your gross income...not the -0.5% Americans have been doing.

Sadly if that situation hit most of us, including myself, I would be in the same situation. Guess all those bailouts didn't work at all.

I feel for this man.

RayAmerica says

How about the lady that was making $70K and is now reduced to digging in garbage bins for recyclables?

Obviously these people just aren't working hard enough--right Ray? After all, anyone that can't find work just isn't trying, right?

I wish I had a booth at that job fair offering Ayahuasca tourism.

RayAmerica says

The one that was really amazing was the guy that had to settle for a part-time job at Target for $9.50 an hour and he was glad to get it. Even if you had your home paid for, how could you survive in San Jose on a part time job paying close to minimum wage?

Sell it, rent, live on the profits. Or stay and try to cover the RE taxes.

klarek says

RayAmerica says

The one that was really amazing was the guy that had to settle for a part-time job at Target for $9.50 an hour and he was glad to get it. Even if you had your home paid for, how could you survive in San Jose on a part time job paying close to minimum wage?

Sell it, rent, live on the profits. Or stay and try to cover the RE taxes.

Who's going to buy it if so many people are unemployed?

The people who ARE employed are either 1) too scared to buy because they're worried they'll be unemployed 2) won't buy at the price that the sellers expect

CaffeineAddict says

Who’s going to buy it if so many people are unemployed?

Are housing prices there below $0? It's paid for. Someone will buy it. Don't be dramatic.

tatupu70 says

Obviously these people just aren’t working hard enough–right Ray? After all, anyone that can’t find work just isn’t trying, right?

When did I ever say that?

RayAmerica says

tatupu70 says

Obviously these people just aren’t working hard enough–right Ray? After all, anyone that can’t find work just isn’t trying, right?

When did I ever say that?

Maybe I misunderstood your feelings on welfare. I thought you believed that everyone on welfare was simply too lazy to find work. They enjoyed living off the government.

Do you now think that welfare is a good thing?

tatupu70 says

Maybe I misunderstood your feelings on welfare. I thought you believed that everyone on welfare was simply too lazy to find work. They enjoyed living off the government.
Do you now think that welfare is a good thing?

When did I ever say "EVERYONE on welfare" is "too lazy to find work?" Be my guest and copy and paste anything that is even remotely close to that.

If you are going to attempt to debate, at least make an effort to be somewhat truthful. This is just another pitiful example of how lame the left really is.

Republican v Dem is a debate for the goddamn scrapheap. Try the American people v the emerging Corporatocracy.

At least this theme is finally finding its way into the broader public consciousness. Five years ago, NOBODY talked about it. I don't think you can say that now.

It's a sunny version of Detroit, right down to the few pathetic excuses for "skyscrapers" downtown all being empty.

1 sad story about a failed realtor.

http://news.yahoo.com/s/ap/20101023/ap_on_re_us/us_mummified_body

If so many people out of job, why is the house price in San Jose so high?

In fact, from 2000 to 2010, the house price was doubled but 150k people lost job.
How can that be possible?

One factor is that the jumbo loan limit in San Jose was raised to $729,750 specifically to screw buyers as much as possible.

Of course our dear "representatives" didn't put it that way. The official reason was "to support home prices" but the actual intended effect is to get you as deeply into debt as possible, because it's no longer legal to enslave you with iron chains. They have to use the chains of debt, but it works almost as well.

The higher jumbo loan limit means that banks can originate loans for up to that amount with no risk, because they can sell the loans with the explicit guarantee of payment from Fannie Mae, which really means the explicit guarantee of payment by Tea Party fools in the midwest and south who are too busy protesting health care for black people to notice that they're being bankrupted by mortgages in California.

CaffeineAddict says

Who’s going to buy it if so many people are unemployed?

I would, if they dropped the asking price enough.

CaffeineAddict says

Yikes. Lots of sad stories.
The guy who made 200k+/yr, in his early 50s it looks like, but ate through all their savings AND retirement savings in 2 yrs 3 months?

I was wondering about that one myself. I mean, when you are in your early 50's you should probably already have enpugh cash stashed to live off of for at least 15 years.

Tea Party fools in the midwest and south who are too busy protesting health care for black people

Please provide your source for that statement.

tatupu70 says

RayAmerica says

How about the lady that was making $70K and is now reduced to digging in garbage bins for recyclables?

Obviously these people just aren’t working hard enough–right Ray? After all, anyone that can’t find work just isn’t trying, right?

I agree tat they aren't trying hard enough. Around here all you see cleaning office buildings are Mexicans. That and I'm sure it's still all Mexicans picking fruit, etc.

http://www.cbsnews.com/video/watch/?id=6470184n&tag=contentBody;housing

Another story.

It's kind of hard to feel sorry at all for that young couple who overbought, lived it up, now living rent/mortgage-free and is going to walk away. He's an auditor of all things. Wonder if he shows any mercy to those he audits? My guess is no.

Actually forget feeling sorry for him. The man should be stoned. He doesn't even feel remorseful or guilty about it unlike the other people. He sounds like he's almost proud of it.

I saw the piece when it aired on Sunday. I turned to my wife and said "why didn't at some point, consider expanding their job search to beyond their local area?"

Perhaps they did, perhaps it didn't help, but certainly, you hit a point where you need to expand your focus beyond your comfort zone. Easier said than done, to be sure, but moving to a lower cost area has to be on the table as a potential option.

If everyone saves like crazy, we will never get out of this recession.

Someone has to spend like crazy to boost the economy.

Very interesting 60Min picked silicon valley of all places.

What can one say what hasnt been said before?

Silicon Valley is a highly deflationary industry, high home prices contribute to job losses, most experienced workers will get termed earlier than a younger less experienced worker, SV is not immune to downturns, etc etc etc. Sadly many believed the myths than the hard cold reality.

zzyzzx says

CaffeineAddict says
Yikes. Lots of sad stories.
The guy who made 200k+/yr, in his early 50s it looks like, but ate through all their savings AND retirement savings in 2 yrs 3 months?
I was wondering about that one myself. I mean, when you are in your early 50’s you should probably already have enpugh cash stashed to live off of for at least 15 years.

More likely many today didnt see the SV recession back in the early 90s was like. Had you seen/lived throught the early 90s recession in SV you would have been a huge net saver since and you would not have overpaid and overborrowed for a home.

For the guy in the 60min, he most likely used his savings as downpayment on a $800-1M home in Palo Alto. There you go ! Rich tech executive!

Second, at 200K, so much for the myth these people over 50 are swimming in wealth and ready to pick up 2-3 homes when prices bottom.

EastCoastBubbleBoy says

I saw the piece when it aired on Sunday. I turned to my wife and said “why didn’t at some point, consider expanding their job search to beyond their local area?”

Tech industry is a shrinking mature industry. 315 cos in 1994, 417 in 2000, down to 240 (and falling) in 2009. If we start to go down to 175, it will really start to hit home for many.

http://www.siliconbeat.com/2010/02/17/vanishing-public-companies-lead-to-the-incredible-shrinking-silicon-valley/

One of the most significant trends I’ve been watching over the past decade is the dramatic drop in public companies in Silicon Valley. Naturally, that number was artificially inflated during the dot-com bubble when it reached 417 in 2000. For our purposes, Silicon Valley includes San Mateo and Santa Clara counties, and the southern half of Alameda County.

That’s not just less than the dot-com era, that’s well below the 315 public companies the valley had in 1994 when the Mercury News started keeping track.

How much of that tech shrinkage is consolidation though? I for example am sad watching Sun disappear into the Oracle behemoth.

As I am too, i rather have more diverse companies each focusing in their market niech, which employ seperate managment who are experts in such industries.

When it comes to Oracle there were lots of consolidations... hum! will Oracle at some time be "too big to fail".

For the small start ups, they are falling/failing very quickly! Crap! i really hate that!

CaffeineAddict says

Who’s going to buy it if so many people are unemployed?
The people who ARE employed are either 1) too scared to buy because they’re worried they’ll be unemployed 2) won’t buy at the price that the sellers expect

3) there isnt that much of a demand for homes in SV to begin with. With half as many employers than in 2000, and fewer than in 1994, and with many SV jobs outside the region, why would you see more demand in SV?

I had the 'pleasure' of driving 101 around 6pm today. I think it has been 3 years since I last had to endure this. If things continue to go well, I won't do it again until 2013.

Sure did not look like 'mass unemployment' to me.

thomas.wong1986 says

With half as many employers than in 2000, and fewer than in 1994, and with many SV jobs outside the region, why would you see more demand in SV?

Number of employers shrinking? Source for that statement? And since the mergers were mentioned above, how about the number of positions?

ptiemann says

thomas.wong1986 says
With half as many employers than in 2000, and fewer than in 1994, and with many SV jobs outside the region, why would you see more demand in SV?
Number of employers shrinking? Source for that statement? And since the mergers were mentioned above, how about the number of positions?

http://www.siliconbeat.com/2010/02/17/vanishing-public-companies-lead-to-the-incredible-shrinking-silicon-valley/

Mergers/Consolidations of positions... dont kid yourself... acquiring companies take a hacket job on positions of target company. I done several myself and many fall into typical step by step process ending in a few months.

Do you expect many of the acquiring companies (like Oracle) to take on former high paid CEOs. CFOs. and VPs of Target companies.... Why would they want to ?

-Top and mid managers.. CEO/CFO/Vps of Sales, Marketing, GA and Engineering first to go along with level managers/directors since these positions are already covered.
-Accounting/HR/IT disappear after final deal is closed with financial data and HR data is transfered to aquired company.
-Marketing and Sales force (out in the field). Customer list/contact info along with sales history is transfered to aquiring company sales force.
-Engineering
Sustained engineering is left open while most of on going Research is canned.

Thats pretty much it in a nut shell...

2nd parties to suffer are the Audit and Law firms who lose a client. Since many have vanished they have trimmed their staffing since demand is no longer there.

ptiemann says

Sure did not look like ‘mass unemployment’ to me.

Ask Mayor Reed, 60min didnt air this part...

http://www.cbsnews.com/video/watch/?id=6987749n&tag=contentBody;housing

thomas.wong1986 says

ptiemann says

thomas.wong1986 says
With half as many employers than in 2000, and fewer than in 1994, and with many SV jobs outside the region, why would you see more demand in SV?
Number of employers shrinking? Source for that statement? And since the mergers were mentioned above, how about the number of positions?

http://www.siliconbeat.com/2010/02/17/vanishing-public-companies-lead-to-the-incredible-shrinking-silicon-valley/

For the record, the article refers only to PUBLIC companies.

RayAmerica says

... EVERYONE on welfare... .... too lazy to find work ....

Be my guest and copy and paste anything that is even remotely close to that.

Done, any more requests? :) this is pretty much the same thing the media does, anything you say can be edited to take it out of context and make you look bad.

tatupu70 says

For the record, the article refers only to PUBLIC companies.

Tatupu, get over yourself and smell the coffee!

thomas.wong1986 says

tatupu70 says

For the record, the article refers only to PUBLIC companies.

Tatupu, get over yourself and smell the coffee!

I'm not a big coffee guy. Smelling co-workers coffee breath turns my stomach...

thunderlips11 says

This is the End Game of a Financial-dominated economy. The banks are always getting their grey area regulatory violations post ex facto legalized, their industry-wide home title cartel called MERS will be legalized, they were given bailouts, and allowed to walk away from their obligations to MBS Investors by dumping it on the Fed, financed with taxpayer debt.

Now other classes of society are saying, “If it’s good enough for them, it’s good enough for me, I ain’t going to be the sucker left holding the bag.” The Rule of Law was never perfect in this country, but now it’s starting to be tossed out the window.

It is a total rotting of the integrity of our populace. People all the time demonize unsavory businesses and their dealings. Now they increasingly seek that sort of back-stabbing opportunity. The sad part is how they try to justify it: "It's what's right for my family's future," or "It doesn't make financial sense to do otherwise." Of course, the lesson taught to their children is to not honor debt and live like a pick-pocket gypsy. Their considerations for what makes financial sense now didn't exist when they made the decision to buy (such as, own versus rent, and does this market make sense). They have completely abdicated themselves of any sense of personal responsibility.

It reminds me of the movie Casino when Joe Pesci is playing Black Jack. He didn't like the card he was dealt so he'd throw it in the dealer's face and say "fuck you, hit me again". That is what these strategic defaulters are. They want mulligans on their bad bets.