A Second Wave of the Housing Crisis

In a recent episode of NPR's Planet Money podcast, Jacob Goldstein explains why housing prices are set to spiral farther downwards. Goldstein used a figure that, until the broadcast, I hadn't heard of: a monthly statistic estimating the amount of time it would take to sell all the homes currently on the market.

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Despite this months it would take to sell all homes figure being at historic lows, Goldstein says the housing market will see more glut because of a "huge, looming wave of foreclosures coming down the pipeline in the next year or two". But foreclosures of sub-prime mortgages which caused the housing crisis, and recession which followed, already happened, right? What else is there to worry about?

But there is a second wave of mortgage foreclosures coming. In December, 2008, 60 Minutes explained that mortgages riskier than sub-prime were made after the sub-prime ones. Many of these mortgages are referred to as "NINJA loans" -- no income, no job, no assests.

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Well then, no wonder the only people who think stimulus worked are Obama's wimpy Democrat brown nosers -- whose noses are too occupied with other activities to sniff a whiff of reality.