Bank Foreclosure Houses, Unemployment Cast Gloom in Indiana
Bank Foreclosure Houses, Unemployment Cast Gloom in Indiana
Increasing numbers of bank foreclosure houses and jobless people are the most common problems that most cities across the country are experiencing right now. The city of Lafayette has not yet recovered from the impact of the foreclosure crisis in the residential market and already, the problem has widened its scope to include the commercial market.
According to industry experts, the recession, foreclosures and unemployment have greatly impacted the spending patterns of consumers. They said that most businesses in the area are counting on discretionary spending as many consumers are pessimistic by nature.
Some industry analysts said that the current economic state is planned, adding that the system is a set up. They pointed out that the federal government should not give companies free capital because they are self-regulated. They added that the federal government has failed to properly manage the U. S. Securities and Exchange Commission.
Last July, Tippecanoe County posted an unemployment rate of 5 percent. The unemployment rose by one point and remained the same until January of this year when the jobless rate increased to 8.1 percent.
Market data released by the Indiana Department of Workforce Development indicated that Tippecanoe County’s jobless rate last July was 10.3 percent. What is happening in Tippecanoe County and Lafayette is mirrored in other counties and cities across the country.
The number of bank foreclosure houses across the country continues to increase as the unemployment rate rose to double digits. And now, commercial properties are joining the foreclosure fray.
In Lafayette, employees of major manufacturing companies are feeling the brunt of the recession and so do their employers who are facing challenges including decline in orders and increasing prices for materials.
Wabash National Corp. President and Chief Executive Officer Dick Giromini said that the economic environment remains depressed. He said that Wabash, a truck-trailer manufacturer, lost about $18 million in the last quarter. And since 2006, the company has eliminated about 250 salaried positions and 800 production associates.
Similarly, Caterpillar Inc. has laid off about 985 employees at the company’s Large Engine Center in Lafayette.
Industry experts noted that the number of foreclosed homes in Tippecanoe County outnumbered single-family home construction activities last year. They said that the county is not yet done with bank foreclosure houses and more are expected in the offing.
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