Friday, 22 October 2010

Foreclosures Accelerating: It's as Simple as ABC

It should be obvious, but the government goons and their friends on Wall Street can't bear to let the cat out of the bag. The US real estate market which drove the world economy is not only a weak it's on the verge of a truly massive collapse.

Why?

The numbers don't lie

Thanks to ever-increasing foreclosures - and the numbers are about to get even worse - there is a glut of supply on the market. Meanwhile, it's been many decades since the American consumer has been in such bad shape.

How bad are things out there?

The most recent issue of Barron's magazine (October 11, 2010) puts the real, uncooked US unemployment figure's at a sobering 22.5%. That is NOT a typo. You can read this stat in Randall W. Forsyth's article “Debasement Blues.”

So who is going to buy this ever-increasing inventory of homes?

There's only one way to sell physical assets that no one wants, and that's to cut the price.

As real estate prices go down, the goofy loans written against these things become even more worthless so we get a double whammy of wealth destruction.
http://www.realecontv.com/videos/real-estate/foreclosures-accelerating-.html


[Posted at the SpookyWeather blog, October 22nd, 2010.]

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