About 5.1 million mortgage holders (or roughly 10% of Americans with mortgages) will own homes that are worth 75% or less than what they owe on their mortgages by mid-June. This is the conclusion of a new study by First American CoreLogic given exclusively to The New York Times. One of the firm's senior economists, Sam Khater, told the paper, "People's emotional attachment to their property is melting into the air." The most astonishing number in the study is that it would take $745 billion to get mortgages to the point where no home loans in the U.S. were underwater.
This research is another example of why the housing problems in the U.S. are so intractable. Building permits rose 11% in December, but housing starts were down. RealtyTrac recently forecast that about 3 million homes will go into foreclosure this year, up slightly from the 2009 numbers. A large number of interest-rate only mortgages will reset higher in the next two years, raising monthly payments on those loans.
Despite low mortgage rates, which have in some cases fallen below 5%, and tax credits for some home buyers, people are reluctant to purchase new houses. Some fear that they could become unemployed like 10% of the full-time work force. Others are concerned that home prices will continue to fall and that even a home bought in 2010 could have an underwater mortgage of its own in 2011.
More Here...
Investors Now View a Default by the U.S. Treasury as More Likely than a Default by the Coca-Cola Company
More Here..
There was this video a guy made of a fire at a fireworks factory. It was awesome. He moved in for a closer view, about 1/4 mile away. Wow it was really going up bigtime. Awesome to watch.
ReplyDeleteJust then the actual motherlode went off killing the guy with the video camera.
This is what America is today.
Unless there is some unknown circumstance, these people underwater just need to swim away. The JP Morgans of the world destroyed Amerika. There is no reason to treat them with any respect.
ReplyDeleteWell, we shouldn't be surprised. Lindsey Williams did forewarn that, before long, most Americans would become tenants in their own land, i.e. no longer homeowners.
ReplyDeletePeak Oil means no more growth. Therefore, traditional banking no longer works in that environment, so bankers have to devise another means to extract "rent" from the average joe.
Bankrupt people, take their property, and rent it back to them in perpetuity. That's the plan, folks. Of course, under this scenario, way less people will have access to a private vehicle as well.
Welcome to Fascism.
Yep, welcome to the Fourth Reich. Just waiting now for all that wrath to turn inward on the domestic populace, and it will.
ReplyDelete30s Germans were way ahead of Americans as to what the government is really up to these days.
I still have to give the Oligarchs credit for putting a slick-talking black man in the puppet presidency.
ReplyDeleteThat was absolutely brilliant on their part. A man who tells the sheeple he is working for them all the while he is looking out for his master's interests only.
In the best of times if you take out a loan to buy a home you start out owing more the the original price.
ReplyDeleteI was watching Jeannine Garofalo that other day in an interview. I have to give her credit for knowing a lot of things before I did. She spoke out against the war and Bush back in 2002-2003. I hated her and thought she was 'a liberal', bitch etc. But she was right.
ReplyDeleteSo, here she is on TV singing the praises of Obama. What the hell? Why? Because he is black?
I mean the guy is Bush with brown skin and a better speaking style. Same policies 100%, even worse in the corporate banker kiss ass dept, expansion wars based on obvious lies.
Just what is the bond that keeps the Obama people thinking he is any different?
OK, he's black. Who gives a shit. He is still a worthless puppet to the corporate elite that own us. Every president since JFK has been just that, but this guy takes the cake.
I am not ignorant enough to be an Obama-hater. That is a waste of time. That is just playing into what he role in supposed to be as a puppet.
All politics in Amerika are fake. Don't vote, don't participate in any way. We the people have ZERO say, we are SLAVES in terms of government power.
It's because on the surface he says a lot of things that COULD be good for the country and the world, if they were implemented. He's also the first president not to be a rich, groomed white man. Think about that one for a while.
ReplyDeleteBut unfortunately he is just a player like the rest of them.
And we have always been tenants in our own land ever since the government was set up.
enon. 3:30- ok I thought about it for a while.(1 second) What the hell does not being rich, and a groomed whiteman have to do with anything? No we haven't ALWAYS been tenants; SERFS(volentary servitude) and SLAVES(involentary servitude)Lincoln was not rich(just one example) but he also started a war against people who wanted OUT of the union, so he was an as*h*le, and he did NOT care about the god awful mess of slavery in this country just preserving the union, 500,000 killed was the result, childs play to what is comming.
ReplyDeleteWhat I fear is comming, I should say!
ReplyDeleteenonymous 2:09- WE ARE IN YOUR WAKE, WE ARE NOT WORTHY. I AGREE 100%
ReplyDelete