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.
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.
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.
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