Skip to comments.Elizabeth Warren Introduces COP's February Report (almost 3,000 more banks will collapse)
Posted on 02/20/2010 12:49:36 PM PST by FromLori
In this report she talks about CRE loans coming due and how this will affect everyone.
“Goldman: Guess What, You’re About To Get Hired Again”
The Business Insider ^ | 2-19-2010 | Vince Veneziani
Posted on Friday, February 19, 2010 1:15:33 PM by blam
We’ll have to start calling them govt. spins instead of govt. sucks
Another 1 million running out in march
Another 1,020 going from boing
By Tami Luhby, senior writer
February 19, 2010: 6:12 PM ET
NEW YORK (CNNMoney.com) -- More than 1 million people could lose their jobless benefits and health insurance subsidy in March if Congress doesn't act fast.
When it returns from the President's Day recess on Monday, the Senate will have one week to extend the deadlines to apply for federal unemployment benefits and the COBRA health insurance subsidy. Currently, the jobless have until Feb. 28 to sign up.
Without an extension, people receiving state jobless benefits won't be able to apply for additional federally paid unemployment insurance, and anyone already receiving those checks could be cut off.
Justin Julian is one the 1 million people who are desperate for Congress to take action next week. If they don't, he and his wife won't have a place to live.
The Lewisville, Texas, resident lost his software position in August and will miss the deadline to apply for additional federal benefits by only a few days. He currently receives $1,600 a month in unemployment benefits, which he uses to cover rent, car payments and the electricity bill. He must borrow money from friends and family to pay for food.
"Without the unemployment insurance, we can't pay any of our bills," said Julian, 39, whose wife is disabled. "It's kind of doomsday for us. We'll wind up sleeping on friends' couches."
Thanks Bill so that will cause even more trouble with housing, banks, etc.
The current “shadow inventory” (including all delinquent loans, not only those that are real estate owned [REO]) of troubled mortgages will likely take about 33 months?or nearly three years?to clear at the current rate of liquidations. Moreover, we believe this estimate is conservative, as we do not assume any loans that have yet to show any serious signs of distress to date will default in the future and further increase the overhang of homes. Nonetheless, we believe that in reality additional loans will default in the near future due to the weak economic environment, distressed residential home values, and the resulting contraction in the supply of mortgage finance.
There's the "glitch" in the story for me. There are food pantries run by non-profits (or churches) all over the place....
The current batch will take longer than thirty three months to foreclose because the federal and state governments will continue to play the “moratorium” games and the debt-holders are highly motivated to pretend these assets on their books still hold full value. What we will see in coming years is debt holders’ refusal or inability to pay property taxes which will lead to tax foreclosures. That will be the end game on many of these properties—and that can take years.
We will still be dealing with this mess five years from now—even if there were no new foreclosures in the mix.
“...inability to pay property taxes which will lead to tax foreclosures.”
Who knows. If too many of those start happening we might see a moratorium on that action.
Yes and we the taxpayers are backing it obama left it off his budget $6.3 Trillion of toxic garbage.