Thu 6 Mar 2008
Worth sharing from The BigPicture:
Moody’s Economy.com estimates that 8.8 million homeowners — about 10.3% percent of all U.S. homes — will have zero or negative equity by the end of this month. Another 10-15 million households are at risk of becoming "upside down" if prices continue falling.
Holy crap. The potential for 20 million homes, or close to 28% of homes could be under water… no wonder so many people are walking away, or considering it.
I also read somewhere (unfortunately, I couldn’t find the source) that 20% of subprime adjustable rate mortgages have delayed payments. And that number does not include the 12% of subprime ARMs that are currently in foreclosure.
Before the fit hit the shan, Nouriel Roubini was chided as being a perma-bear with the most pessimistic outlook imaginable… and he recently stated that in the context of everything that is going on today, he was truly guilty of being too optimistic.
March 7th, 2008 at 11:42 am
Of course, if you are perma-bear long enough, you will be right eventually like a stopped clock is right twice a day. Roubini is absolutely astounding in his consistent negativity.
I do often wonder if I could have been one of these people caught in the housing crunch if I was still an owner. Does anyone know anyone experiencing something like this?
March 7th, 2008 at 11:53 am
Thankfully, no one that I know…