Foreclosures Causing Misery to Cities

February 27th, 2009 | Tags: Foreclosure Notice

Foreclosures are the root cause for causing misery to the cities of America. This has led to a survey that ranks them according to the intensity of their misery.

Chicago is a potential contender for hosting the Summer Olympics of 2016. The most powerful man in the world, the American President Barack Obama, is from Chicago. Yet it is the third most miserable city on the country. Considering the vibrations of Chicago this seems to be a contradiction and irony.

The weather in Chicago is lousy, lengthy commutes, increasing joblessness and the highest rate of sales tax are responsible for Chicago getting this dubious distinction of being one of the top miserable cities of USA. Also to blame is the presence of high doses of corruption among public servants.

From 2007 the misery scale began to go up and reached its peak last year. There were market slumps, banks bursts and bailouts that caused real estate markets to collapse. These clouds overshadowed soul-stirring events like Beijing Olympics and the election of Obama. The Misery Index rose together with unemployment rate and inflation from 7.5 in the past year to 9.6 in 2008. Forbes Misery Measure noted the topper to be Stockton, California. In 2007 it had been runner up.

Stockton is unrivalled in commute times, rates of income tax, unemployment and violent crimes. New York has an income tax rate higher than Stockton. Stockton boasted of being ground zero of the housing zoom and consequently the bursting of the balloon. From 1998 to 2005 the price of houses tripled and then they came plummeting down in 2008. In 2008 Stockton topped the list of high foreclosure rate (9.5%) as per the findings of RealtyTrac. In 2009 the forecast is far from shining. The price of houses is expected to fall by another 36%. In 2008 it fell by 39% according to Moody’s Economy.

The Mayor of Stockton An Johnston said, “We are engaging the entire community and encouraging everyone to get involved and help us find solutions that meet the needs of our community. Volunteerism is encouraged, looking out for your neighbor, and taking personal responsibility where individuals can make a difference. We are partnering with all community organizations–schools, churches, non-profits– to provide support services and help individuals and families get through these difficult times.”

While calculating the misery of the cities importance has been given to the number of public officials who have been indicted for corruption. In this respect Illinois tops the list.