The Second Wave of Foreclosures is Coming! 01/20/2010
A hurricane has two walls and an eye. The first wall is bad, causing lots of damage, but usually it just gets thing really wet and soggy. The eye is deceiving, because the seagulls come out, maybe the sun shines through and the wind calms down. A false sense of security. The problem is the second wall. This is what packs the wallop with the storm surge and devastating winds. We are in a Real Estate hurricane and the storm is comprised of the adjustable Mortgage resets which are the driving force behind the foreclosures and the foreclosures are the driving force behind the drop in Residential real estate. The two charts below show how 2008 was the first wall of the hurricane. Take a basic, rational viewpoint of 2008. If the first wall caused as much damage to our economy and stock markets, what will the effect be of the second wall being 10 times worse. According to the T.V. and financial folks of Wall Street and our Government, it does not exist. They are blinded by the Eye of the storm, or 2009, the lull in chaos. They see the partial rays of sunshine and announce the recovery has begun. Don’t be deceived. They are blinded by the fact that their paycheck comes from a rising stock market, and if they announced that they believed the market had further declines ahead, all their clients would ask a simple question. “If you believe the markets are going down, and you lost me 20%, 30%, or whatever % in 2008, why should I keep my money with you considering you do not know how to protect me from a declining market?” Thus, blinded by their paychecks, the only thing the financial talking heads will ever say is, “Stay the course, and the recovery has begun!” The second wall is coming, Batten down hatches!   CommentsLeave a Reply | FREE SUBSCRIPTION!Receive Emailed Articles as they are Posted. Click Below on RSS Feed!Jason's Thoughts!My goal is to use this format to bring important and timely ideas to the surface on recent events which I feel will affect all of us financially. ArchivesFebruary 2012 Categories |
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