It is unlikely much will be done for mainstreet and the millions ( some experts say one in 26 will be foreclosed on ) of homeowners unable to pay their mortgage. From one perspective to do so would be massively unfair to those working three jobs to pay the mortgage or through their success own their homes outright.
The foreclosed generally are coming in three waves;
The Alt-A loans, which are the " ninja " loans used for those with nothing down, no documentation or citizenship. These were amoung the first to fail because these were the folks who could only count on rising home values to be able to allow them to refinance and afford the house.
The House Flippers, were juggling equity to refurbish and sell at a profit. It did not take much of a decline in property values to make these house worth less than the investment and many just walked. People had learned from the commercial real estate market that by forming a corporation they could buy and sell houses and shield themselves personally against potential losses. Property values decreased and these corporations folded.
The Subprime Losers, these I call losers because many of those people ( including me )just had shitty luck. In the last five years subprime was all you could get in some states, period. We got locked into high interest rates, and saw as much as a 50% decline in property values, making any hope of refinancing impossible.
Next will be the small business owners and their employees. Two years ago things were entirely different. People felt like they had solid careers.
After that comes the commercial property bust as many commercial sites sit empty and rentless.
And while all this is happening, the banks will sit quietly on the hundreds of billions in tax payer money they have received. When the bottom is reached, they will use this money to purchase struggling foreign banks. This is something the U.S. government can't do; purchase foreign banks. But if they give banks capital and they use that to purchase foreign assets ultimately the U.S. will see returns in light of the increased tax revenues, and if I remember correctly, the government now has partial equity in these banks.
THIS IS WHY THINGS ARE HAPPENING AS THEY ARE.
I don't know what WWW4 will be fought with, but WWW3 is being fought right now with mergers , commodities manipulation, ethanol and banking fraud.
The foreclosed generally are coming in three waves;
The Alt-A loans, which are the " ninja " loans used for those with nothing down, no documentation or citizenship. These were amoung the first to fail because these were the folks who could only count on rising home values to be able to allow them to refinance and afford the house.
The House Flippers, were juggling equity to refurbish and sell at a profit. It did not take much of a decline in property values to make these house worth less than the investment and many just walked. People had learned from the commercial real estate market that by forming a corporation they could buy and sell houses and shield themselves personally against potential losses. Property values decreased and these corporations folded.
The Subprime Losers, these I call losers because many of those people ( including me )just had shitty luck. In the last five years subprime was all you could get in some states, period. We got locked into high interest rates, and saw as much as a 50% decline in property values, making any hope of refinancing impossible.
Next will be the small business owners and their employees. Two years ago things were entirely different. People felt like they had solid careers.
After that comes the commercial property bust as many commercial sites sit empty and rentless.
And while all this is happening, the banks will sit quietly on the hundreds of billions in tax payer money they have received. When the bottom is reached, they will use this money to purchase struggling foreign banks. This is something the U.S. government can't do; purchase foreign banks. But if they give banks capital and they use that to purchase foreign assets ultimately the U.S. will see returns in light of the increased tax revenues, and if I remember correctly, the government now has partial equity in these banks.
THIS IS WHY THINGS ARE HAPPENING AS THEY ARE.
I don't know what WWW4 will be fought with, but WWW3 is being fought right now with mergers , commodities manipulation, ethanol and banking fraud.
