To the editor: I wonder if the people of Fairbanks understand what’s coming now. The loss of hundreds of jobs at the university and elsewhere in the city is going to cause a huge buildup of excess housing that no one will want to buy. It’s not just that property values will crash — no one will be around to buy those houses. This happened on a national scale in 2008, and it took years for the excess inventory to be disposed of. Foreclosures will be rampant. No bank will be willing to give a mortgage, not when past history is not a useful guide to the value of houses.
Aside from the housing prices, most small businesses will fail. With so many people not having jobs, and many people moving away, businesses will all lose so much of their revenue that they can’t pay rent or pay employees. The Fairbanks recession will be on.
Costco, which has made such a good impact on the city, will not have enough business to remain here.
The city will lose much of its tax base and not be able to provide essential services.
There were reports from Detroit that as their population base fell ,bears were seen walking through the streets. That’s already common in Anchorage — most people in Fairbanks will need to move into the city to avoid their pets being killed.
When the last person leaves, I hope he or she remembers to turn out the lights.
I hope you can live on that PFD check.