By The Wall Street Journal
The relentless slide in home prices has left nearly one in six U.S. homeowners owing more on a mortgage than the home is worth, raising the possibility of a rise in defaults -- the very misfortune that touched off the credit crisis last year. The result of homeowners being "underwater" is more pressure on an economy that is already in a downturn. No longer having equity in their homes makes people feel less rich and thus less inclined to shop at the mall. And having more homeowners underwater is likely to mean more eventual foreclosures, because it is hard for a borrower in financial trouble to refinance or sell a home and pay off the mortgage if the debt exceeds the home's value. A foreclosed home, in turn, tends to lower the value of other homes in its neighborhood. When will the Mayor and Council realize that our whole economy and ways of life are in trouble? Perhaps that extra million was the message they need to realize how tough things are for the residents, it is an even better time to adjust course and rehab the gym with the money we now have, incurring NO NEW DEBT. The roof, walls, floors, plumbing and electrical system would be NEW. The pool would be repaired. The gym could be air conditioned. Billy could get his placque. A new theater could be added to the adjacent complex, if desired. The Senior Center could be expanded. All this with NO NEW DEBT. Contractors would still be working.

common sense?

Now prices are plummeting, especially in once-sizzling markets like California, Florida and Nevada. And the bleeding might not stop until the END OF NEXT YEAR. The median home price in the U.S. dropped 9 percent in September from a year ago to $191,600, and is down 17 percent from the peak in July 2006, the National Association of Realtors said Friday. Already, 23 percent of homeowners with a mortgage owe more on their loans than their homes are worth, and that figure is expected to rise to 28 percent by this time next year, according to Moody's Economy.com. While the majority of homeowners will continue to make their payments and wait for values to recover, some will mail their keys to their lender and walk away, leaving the lender with no choice but to foreclose. There are several foreclosures in Miami Springs. Foreclosures drag down the prices of existing homes, and tax revenues with them. Wake up, Council! Tighten your belt! Reduce our costs. You can start by closing the pool until June, and saving us almost 200k! Suspend the jitney- saving us 120k per year! Initiate 15% pay cuts for all Dept heads-leadership starts at the top! Suspend the new gym project while we can do it at minimal cost! Suspend the Riverside project, a nice but not necessary idea, before it costs us more! Our incoming revenues are dropping drastically- act like you KNOW, and even maybe CARE. DONT hire a new, unqualified Rec Director for 100k! Have some common sense!