Sunday, September 21, 2008

Dayton & Vicinity: One Giant "Toxic Asset"

Spotted at the Hispanic Festival yesterday.....
...which brought to mind the recent financial meltdown. This was driven by the mortgage crises, where risky mortgages are going belly-up, crashing the financial system. One solution seems to be to move the "toxic investments" or "toxic assets" off the balance sheets into a Resolution Trust Corporation style quango.

This is all high-finance. But there are houses and property behind all this, and this aspect of the crisis is not being discussed too much, as it's seen as a local issue.

Dayton was a ground zero for the foreclosure crisis. As one can see by this map showing foreclosure action a year ago the entire county was being hit by foreclosures, becoming one giant toxic asset.

Though high finance gets the Federal action, places like Dayton and its suburbs are left to sort it out the best they can.

Not even any state action to help out, a legacy of poor governance in Columbus, which actually helped continue the crisis due to the state legislature voiding Dayton and Cleveland attempts to establish local regulations for the mortgage industry.

So here we are. The vacant, foreclosed houses in the area may well have a new owner soon.


Admin said...

I've been thinking about this mortgage holding concept too. After the President spoke Friday morning I wanted to call the White House but I called a Trotwood City Council Member instead. He is on a national housing board with the National League Of Cities. I was concerned there would not be enough money in this bill to maintain all these properties they will hold. That is extremely important to the values of the neighborhoods where a foreclosed property is located. He called the committee's exec. dir. in DC and they were already on it and already had a call into the White House! It seems there are some people out there working for us.

Admin said...

I just want to correct any misconception. I am not a Trotwood Administrator I am Bruce Kettelle. I accidentally signed on here using an account that I use to maintain another blog for which I am the administrator.

Jefferey said...

Thanks Bruce, good to hear this.

Incidentally. about that foreign bank seems Deutsche Bank holds quite a few properties in the Dayton area.