By If you’ve been noticing the headlines recently, you’ve seen that some European countries are going through extremely difficult economics problems. The headlines you’ve probably seen the most have been about Greece. Their government spending was way out of whack, and their economy is paying the price.
The other countries having hard times are Portugal, Italy and Spain, and when you add Greece, the initials for Portugal, Italy, Greece and Spain spell out PIGS. You may have seen this term in the news.
Why do I point this out? Why is this at all relevant to selling homes and getting mortgages for homebuyers?
The reason I find this relevant and interesting is that the PIGS countries are just starting to sink into their economic problems. They’re going through now what we went through two years ago.
They’re just starting to grapple with their problems, and we’re starting to come out of our recession.
Two years ago a lot of Americans thought the world was coming to an end. Washington Mutual, Bear Stearns, Lehman Brothers and Indy Mac all failed, and AIG, General Motors, and our biggest banks had to get emergency financing from our government.
Serious people on the news and in the newspapers would ask if the Bank of America would fail, and when questions like this can be part of our national dialogue, you know people are scared.
Things are different now.
