Daily Archives: January 13, 2011

One Million Homes Repossessed in 2010

At roughly 4 people per home on average, that’s 4 million evicted people.

Twenty percent more coming in 2011 – where they will “peak”, according to this article.

How’s that, when there are 7 million homes poised to go, with perhaps another 5 million two months or more behind on their payments?  And are things slowing down?  Even if they are (doubtful), there’s no peak in sight.

This is not the free market.  This is political and bank driven national suicide.

Some days I’m in danger of losing my sense of humor.  You have to remain aware of this stuff but you can’t let it get to you.  At least you can read Reed, who always has a pithy thing or two to say about it all.  He doesn’t pull punches, but doesn’t lose his sense of humor either.

 

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US Mortgage Default Rates

Mish Shedlock posts some very significant charts and tables showing a disaster in the making.

I probably have a lot more to say about this later; but for now, it appears that default rates are running at an average of about 25% nationwide on typical residential mortgage loans.

Since the risk models are predicated upon default rates never exceeding the 3% to 5% range, and since exceeding those levels even by a little would amount to a “crisis”, I just wonder what kind of words are being thrown around in the corridors of power about this data.  I wonder how long the – let’s face it – assholes in DC and on Wall Street have known about this.

When you throw in that “jumbo” mortgages are in substantially better shape – and this indicates a situation where a very small number of the people at the top are doing fine while literally everyone else is borderline homeless – I imagine the congresspersons with more foresight have already built their underground bunkers.  No wonder they’re losing it over the events in Arizona.  To most of us, that appeared as the random act of a lunatic; but our rulers see a dangerous rabble out there where Jared whatshisname is just the first wave.

Maybe they’re right.  I hope not.

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