About half of U.S. mortgages seen underwater by 2011

michaelr

Former Staff
Dec 2006
89,668
6,643
FEMA Region 10
About half of U.S. mortgages seen underwater by 2011



Don't forget what this means to the derivatives markets as well.



I keep saying that were at the beginning of this disaster, and I am right. We will conflate with Mexico and China before it is done, that is if the gov does not just shut the country down all together.
 
May 2007
230
3
Hey havent ya heard the recession is over, the dow is close to 9000. Didnt you get the memo "jobless recovery", I mean jesus how stupid do these people think we are.



Jobless recovery wtf are they kidding when they say that. I'm in the medical field and I'm going back to school for more training to do Echo/Vascular ultrasound I'm banking on the fact that there is a scarcity in that field right now.



But I'm starting to think that it will not matter if the demand is not there it will not matter. So now I'm just hoping I will still be able to make my same current income when I finish.



How optimistic, unfortunately with all that is happening it will probably be a reality.
 

Sparta

Former Staff
Aug 2006
22,817
13,593
Connecticut
I didn't see any mention of the effect of properties held by the banks being released to the market, I wonder if that was taken in to account or if it will be even worse than reported.
 

michaelr

Former Staff
Dec 2006
89,668
6,643
FEMA Region 10
[quote name='Sparta' date='13 August 2009 - 01:15 PM' timestamp='1250194524' post='4744']

I didn't see any mention of the effect of properties held by the banks being released to the market, I wonder if that was taken in to account or if it will be even worse than reported.

[/quote]

I am not sure Sparta. Whats worse,I don't think they will be dumped on the market, not for a while anyway. These homes have value to the bank, even if they have no value to the buyers. They are leveraged at about 70:1. To dump them at reduced rates would be detrimental to the derivatives that they support. It could be done I guess, but the banks certainly will not pick up the tab. This could be part of the $24.7 trillion commitment made by the government.