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Illegal Immigrants Returning To Mexico For American Jobs

"MEXICO CITY—As dozens of major American corporations continue to move their manufacturing operations to Mexico, waves of job-seeking Mexican immigrants to the United States have begun making the deadly journey back across the border in search of better-paying Mexican-based American jobs.

"I came to this country seeking the job I sought when I first left this country," said Anuncio Reyes, 22, an undocumented worker who recrossed the U.S. border into Mexico last month, three years after leaving Mexico for the United States to work as an agricultural day laborer. "I spent everything I had to get back here. Yes, it was dangerous, and I miss my home. But as much as I love America, I have to go where the best American jobs are."

Reyes now works as a spot-welder on the assembly line of a Maytag large-appliance plant and earns $22 a day, most of which he sends back to his family in the U.S., who in turn send a portion of that back to the original family they left in Mexico. Like many former Mexican-Americans forced by circumstance to become American-Mexicans, Reyes dreams of one day bringing his relatives to Mexico so that they, too, may secure American employment in Mexico.

Despite the considerable risk illegal immigrants face in returning across the border, many find the lure of large U.S. factory salaries hard to resist—at 15 percent of the pay of corresponding jobs in America, these positions pay three times what Mexican jobs do.

Still, the danger is very real. When 31-year-old illegal Arizona resident Ignacio Jimenez sought employment at an American plant in Mexico, he was shot at by Mexican border guards as he attempted to illegally enter the country of his citizenship, pursued by U.S. immigration officials who thought he might be entering the country illegally, and fired upon again by a second group of U.S. Border Patrol agents charged with keeping valuable table-busing and food-delivery personnel inside American borders.

"It was a nightmare," Jimenez said. "Many became disoriented and panicked, and some were mixed in with immigrants going the other way across the Rio Grande and ended up swimming to the wrong country."

He added: "My cousin almost drowned. They fished him out and sent him back to wash dishes at T.G.I. Friday's."

Many say the trip across the border as illegal Mexican-American emigrants offers them a chance to land the American jobs in Mexico they never have been able to get as illegal Mexican-American immigrants in the U.S.

"It has always been my goal to have a good American job," Johnson Controls technician Camilla Torres, 27, said. "Many Mexicans now see Mexico as the land of opportunity. Mexicans will not stop trying to get here, no matter how much the Mexicans wish we would not."

Indeed, the trend of illegal re-emigration is causing great resentment among the local Mexican population, and tension between Mexicans and illegally re-entered Mexicans—dubbed repatriados—continues to build.

"I hate these Mexicans, always coming back here to Mexico from America and taking American jobs from the Mexicans who stayed in Mexico," said 55-year-old former Goodyear factory manager Juan-Miguel Diaz, who lost his job to a better-trained repatriado last March. "Why don't they go back to where they went to?"

Still, Jimenez, Reyes, and hundreds of others say they have no choice.
"The American Dream is alive and well in Mexico," Reyes said. "If I work hard, save my money, and plan well, I will be able to send my children to a good school—and who knows? If they study hard, perhaps they will get jobs someday at the new plant General Motors is building in China.""

(The Onion - America's Finest News Source)

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Home Mortgage History

"Homes traditionally have sold for about 20 times what it would cost to rent them for a year. In 2006, houses were selling for 32 times annual rent...

The end of inflated leverage

An extreme relaxation of lending standards inflated the housing bubble.

"Shoddy underwriting on mortgages" is the primary cause of the housing crisis, says York, the Wachovia economist. "People got caught off-guard by how bad it was."

Millions of home buyers — poor, rich and middle class — were approved to buy homes at prices that had been out-of-reach just a few years earlier. Lenders offered low introductory "teaser" rates on adjustable rate mortgages and approved borrowers based on artificially low mortgage payments, not the higher ones that took effect later.

What else changed:

• Optional payments on principal —In 2005, 29% of new mortgages allowed borrowers to pay interest only — not principal — or pay less than the interest due and add the cost to the principal. That was up from 1% in 2001, according to Credit Suisse, an investment bank.

• No verification of income —Half of mortgages generated in 2006 required no or minimal documentation of household income, reports Credit Suisse.

• Tiny down payments —In 1989, the average down payment for first-time home buyers was 10%, reports the National Association of Realtors. In 2007, it was 2%.

Low down payments and ARMs gave homeowners enormous financial leverage to pay high home prices. Leverage boosts buying power through debt, the same way a 100-pound woman uses a lever to jack up a 3,000-pound car.

Consider a couple with $20,000 cash. In 2006, they easily could get a 5% down mortgage to buy a $400,000 house. Today, a 10% down payment would limit the couple to a $200,000 house.

"Leverage matters a lot when you buy a house," says University of Wisconsin economist Morris Davis, an expert on housing prices and rents. "We're not going to go back to the days of only 20% (down payment) mortgages, but the days of putting nothing down are long gone."

Easy access to borrowed money reset all housing prices, even those paid by cautious borrowers. People of all income classes moved up a notch, Census Bureau housing data show.

The sale of new homes costing $750,000 or more quadrupled from 2002 to 2006. The construction of inexpensive homes costing $125,000 or less fell by two-thirds. The biggest boom was in the middle. Homes costing $200,000 to $300,000 became affordable to millions of families.

Lessons from the Depression

The Great Depression of the 1930s was preceded by a real estate bubble, also fueled by loose lending standards and shrinking down payment requirements. Those real estate problems — and solutions — echo today's.

Florida real estate was the epicenter of speculation in the mid-1920s. Developers ran up prices by selling to borrowers who put as little as 10% down. Those were shockingly risky loans at a time when the standard mortgage lasted five years and required a 50% down payment.

The risky loans went bad first, but it was the spread of credit problems to the supposedly safe loans — five years and 50% down — that caused the housing market to collapse.

The five-year loans required no payments to reduce principal. Homeowners expected to refinance mortgages when the loans expired, usually with the same lender. The stock market crash led to a "liquidity crisis" — no money to borrow — that dried up mortgage refinancing.

Millions of families lost their homes to foreclosure. Falling prices on nearly everything — homes, farm crops, wages — made consumers reluctant to buy and banks afraid to lend.

As part of the New Deal, the government took control of millions of loans and restructured them into something new: the modern mortgage, with 20% down and principal that is repaid over the life of the loan. The government extended the mortgages to 15 years, then 25 and finally 30.

When World War II ended in 1945 and the Baby Boom began the following year, the 30-year, fixed-rate mortgage became a cornerstone of society and led to unprecedented levels of homeownership."

(USATODAY.com)

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