A lot of people see the foreclosure rates and people losing their homes as a sign of people with limited income that have made poor choices.  Although this may be true in a lot of cases, it is not a level playing field.  Even the affluent are having their woes, which I think is a broader indicator of more going wrong with the economy than people realize.

In an article in The New York Times today, they spoke of Greenwich Connecticut, and of the affluent living there.  CEO’s, hedge fund managers and more than a few billionaires live there in a town of roughly 600,000 souls.  It is one of the wealthiest neighborhoods in all of America.  Yet even these people are facing foreclosure woes, and it shows us that this is really a more universal problem than originally thought.

A home on Stanwich road, worth $2.6 million, is close to be auctioned off.  The owner of a 2,720-square-foot, four-bedroom colonial featuring a luxury kitchen, swimming pool and tennis court on Hettiefred Road has been close to foreclosure for months now.  Several dozen other owners in Greenwich have received foreclosure notices, and there is not a sign of let up.

Trying to sell a home worth $2.6 million is a real hassle, because no one wants to buy a home like this, and credit is still very tight.  Owners of these expensive homes can find a lot of creative ways to keep the wolf from the door, and are making a lot of last minute payments to keep in their homes.

To me this is frightening.  If affluent people cannot afford their homes, then what about Mr. & Mrs. Average Joe on Main Street.  Do we all end up living in the streets, walking to work, and eating out of dumpsters?  I am sure there are readers who will scoff at this kind of thinking, but when you sit where I do, and read as much news, and see that the cost of fuel is driving people to bankruptcy, then I have to take pause.  A report from Reuters today said that the oil companies will once again take a huge profit this year, but the people who are consuming their product are reaching a point where the cost of getting to work is costing them more than their mortgage payments.  To anybody’s way of thinking, this is just not kosher.

We are nowhere near the end of this, and the little dab of money that people receive with the stimulus checks will go in a lot of gas tanks and on late mortgage payments, rather than to Target or Kohl’s.  And that is where the true crime lies.  In the great country of America, even the working poor should at least be able to afford to feed their families and get to work.  And that is becoming less and less an option with each passing day.  Hang on to your hats, the ride ain’t over yet.