Who are hit by this economy?

East Penn Automotive moved. Now, changes are you don’t care if you already know who, where or what East Penn Automotive is, but for me it was a nice surprise when I arrived at their station after being on the phone making an appointment earlier on, and the place was empty.

A quick call delivered me the right and new address and I was on my way. Now, over the last couple of years I became pretty familiar with the guys over there after they serviced and repaired my car numerous times. I have written about them in previous posts.

So, while I was in there the manager of the place told me the reason of their sudden move, which had to do with their old location being an old gas station. The choice that their old landlord left them was simple; sell gas again or take the tank out of the ground for $200k. The choice was simple – and the move was a fact.

Now, this is where this current bad economy doesn’t make sense to me. That place is empty now, as so many places around. But this landlord preferred kicking them out and earning nothing that to let them stay in that building; a loss for all parties.

The same thing with good friends of us; the economy hit hard, and eventually they could not keep up with their mortgage. So they made a deal with the bank in which they arrived in a shortsale situation, and the bank put their house immediately on the market for 1/3 less then the current value of the house, and after that lowering it even to 1/2 of the price. If the bank would make them that offer, or even 4/5 of the current value, they would have been out of the trouble. But the bank refused. So now our friends do not pay mortgage, the house is still on the market and both parties lose, a lot. There should be this bad economy, but somehow the people screaming the loudest about it do not seem to want to fix it even if that means more money in their pockets. Because this economy seems to hit the poorer people a lot more that banks and landlords.


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