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Title: This Is What A Collapsing Ponzi Scheme Looks Like: Housing Market Headed Off A Cliff As A Shocking 10.8 Million Mortgages At Risk Of Default
Source:
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URL Source: http://daviddegraw.org/2011/07/this ... -mortgages-at-risk-of-default/
Published: Jul 27, 2011
Author: David DeGraw
Post Date: 2011-07-27 14:10:01 by Capitalist Eric
Keywords: None
Views: 3148
Comments: 12
With defaults already piling up, the shadow inventory of homes has been growing rapidly, and given this new data the number is going to skyrocket. As this chart shows, the total has gone up from 2 million homes in 2009 to 3.35 million as of April, a 67.5% increase already. The Atlantic explains this shadow inventory chart: “What’s happening to the homes of all those defaulted borrowers that we hear about? Many of those properties are a part of so-called shadow inventory. This is the sort of limbo between when a home’s loan defaults and when the property is put on the market for purchase. The increase shown above is staggering. The shaded area shows mortgages more than 12 months delinquent or in foreclosure (darker blue) and those seized by the bank (lighter blue).” Laurie Goodman’s full presentation is available in pdf format here. Obviously this is going to significantly drive home prices further down, as I reported a few weeks ago, 28% of US homeowners already owe more on their mortgage than their homes are worth. A recent survey by Fannie Mae found that 27% of American homeowners are considering walking away from their mortgage. A perfect storm is brewing. As prices continue to drop, with 10 million now at risk of default, a strategic default movement could devastate the “too big to fail” banks that caused this mess in the first place. With all this trouble headed their way, no wonder they are fighting hard to, as Reuters put it, get “immunity over irregularities in handling foreclosures, even as evidence has emerged that banks are continuing to file questionable documents.” They can attempt to fraudulently paper over reality, play accounting games, “extend and pretend“ and buy off all the state attorneys and regulators they want, even have the Fed, Treasury, Congress and the president in their pocket; they can buy all the king’s horses and all the king’s men, but they can’t put Humpty Dumpty back together again. This is what a collapsing Ponzi scheme looks like. We must break up the “too big to fail” banks and end this RICO racket now. As the data proves, the longer we wait, the uglier this is going to get
You might want to sit down for this one. As bad as the housing crisis has been over the past three years, it has only been a warm up to what we have headed our way. Laurie Goodman, from Amherst Securities, has been tracking the housing market as well as anyone. She just presented her latest findings at the American Enterprise Institute and it is a horrific forecast, to say the least. As she puts it, 10.81 million homes are at risk of default over the next 6 years. Even if we try to be extremely conservative we can’t get the number below 8.7 million units.” 
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#1. To: Capitalist Eric (#0)
We will never get out of the current economic situation until the housing market finds a bottom, stabilizes, and starts to grow again. Everything that the government has done to "stabilize" the housing market has simply postponed the day of reckoning.
just wait until they slow the economy by cutting spending.
Tagline for sale - inquire within
Laying off government employees will create more jobs.
"...all of the equations in neoclassical economics are rubbish. The differential equations describe nothing. Economics is not about mathematics, it is about the human being." Sandeep Jaitly
They need to fire over half of the government employees. Most are unconstitutional. Why do you liberals hate the constitution? Oh yeah because it puts limits on your tyranny.
Why do you liberals hate the constitution? Oh yeah because it puts limits on your tyranny. Employment is Tyranny! new slogan from the radical right.
"...all of the equations in neoclassical economics are rubbish. The differential equations describe nothing. Economics is not about mathematics, it is about the human being." Sandeep Jaitly
Are you taking stupid pills? That isn't what I said at all. They need to fire all of the unconstitutional government employees. For instance. Everyone at the department of education. It is unconstitutional as education is a state issue. They need to fire everyone at the social security office. That is also unconstitutional. The people who are "owed" money should be able to sue the people in government that put that unconstitutional act into law. That means Obama and people like him should have liens put against their money and everything should be taken from them. What I am saying is that Obams and politicians who did this to us should be thrown out and enslaved. Put them in cages at the zoo.
You're looking in the wrong sector.
"...all of the equations in neoclassical economics are rubbish. The differential equations describe nothing. Economics is not about mathematics, it is about the human being." Sandeep Jaitly
No I am dead on target. Obama is the worse thing that has ever happened to this country. Worse then 911, the civil war and ww2 combined. He has earned being called a nigger.
If you can think of a worse word I can call him then tell me and I'll call him that too.
Go ahead. It does Obama no harm, and makes you look bad.
"...all of the equations in neoclassical economics are rubbish. The differential equations describe nothing. Economics is not about mathematics, it is about the human being." Sandeep Jaitly
Why do you liberals hate the constitution? Oh yeah because it puts limits on your tyranny. Where in the constitution does it mention maintaining a standing army that does most of it's fighting overseas in another country's backyard because of the doom and gloom beliefs of a cult? And used as a surrogate employer for a large proportion of it's citizens.
It's more of his black and white 'splitting'. He's ego invested.
To preserve our independence, we must not let our rulers load us with perpetual debt. We must make our election between economy and liberty, or profusion and servitude. — Thomas Jefferson
#2. To: jwpegler (#1)
Everything that the government has done to "stabilize" the housing market has simply postponed the day of reckoning.
#3. To: go65 (#2)
just wait until they slow the economy by cutting spending.
#4. To: lucysmom (#3)
Laying off government employees will create more jobs.
#5. To: A K A Stone (#4)
They need to fire over half of the government employees. Most are unconstitutional.
#6. To: lucysmom (#5)
Employment is Tyranny! new slogan from the radical right.
#7. To: A K A Stone (#6)
That means Obama and people like him should have liens put against their money and everything should be taken from them.
#8. To: lucysmom (#7)
#9. To: lucysmom (#7)
#10. To: A K A Stone (#8)
He has earned being called a nigger.
#11. To: A K A Stone (#4)
(Edited)
They need to fire over half of the government employees. Most are unconstitutional.
#12. To: lucysmom (#10)
Go ahead. It does Obama no harm, and makes you look bad.
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