With the already existing debt and spending problems facing America's Democrat-run cities, a sudden 30% drop in home valuations, and the corresponding drop in tax valuations, would put them ALL over the edge.
How do you pay those wildly over-promised vote-buying Chicago Public Employee Pensions if housing values in Chicago suddenly dropped 30%?
Hell, the banks are still refusing to foreclose on homes that people haven't been paying on for years, because they don't want the losses to hit the books.
bookmark for later reading
“By Almost Every Measure Stocks Are Overvalued” Warns Goldman After Slamming Corporate Buybacks
How do you pay those wildly over-promised vote-buying Chicago Public Employee Pensions if housing values in Chicago suddenly dropped 30%?
Progtards would raise the tax rates to compensate for the estimated loss of revenue...
Socialism has to fail. Better now than later.
Yes, there will be another housing crash. Timed to coincide with the next POTUS approximately 9th month in office, so it will all be blamed on him.................or her..............
“Hell, the banks are still refusing to foreclose on homes that people haven’t been paying on for years, because they don’t want the losses to hit the books”
Yep as long as the banks keep those properties on the books at the inflated values they can still say they are fully capitalized.
The one way you can keep yourself out of ALL potential upside to the market and ALL potentially profitable trading (whether long or short) or investing is to over-read Zerohedge and other bearish sites. I absolutely promise you. You *may* acquire what you think or what the author(s) think is some level of superior “truth” but it will almost NEVER make you any money.
Over-read these sites and you’ll become a hearty disbeliever of anything EVER going up in dollar-denomiated value and hence you will never participate is same.
The stock market is leptokurtotic, in favor of the upside. You don’t have to be in it all the time. But it is provably wrong to believe that it is headed to zero. And by the way, should you successfully bet that the market heads to zero...who will be around to pay off your bet?
quote “Truth be told, we think the Fed is obliged to talk up the economy because if they were brutally honest, the economy what vestiges of optimism remain in the domestic sectors could quickly evaporate”
Make no mistake. If a Republican is elected, the truth will THEN be told, and made to appear to be the newly Republicans fault.
Housing crash? It never recovered from the last one.
It’s not just the mortgages. Many of those original notes also had Lines of Credit secured by the former phantom valuation. If the first note is called, any second in excess of the original note is a full-on loss. So while a bank might be able to recoup something on a resale after foreclosure, anything owed on the LOC is a bath.
Re; “Hell, the banks are still refusing to foreclose on homes that people haven’t been paying on for years, because they don’t want the losses to hit the books. “ Is this hyperbole or is it really true and how widespread might it be? Thoughts?
How much does your local superintendent of schools rake in annually? How much for his five or ten assistant superintendents? How much is each expecting as a pension? Medical benefits? Taxpayer funded trips to Hawaii or Las Vegas for "seminars" to brush up on their "skills?" How much for the propaganda, errr, public relations officer to massage press, media and public opinion in the boss's favor? Etc., etc., etc., ad infinitum ad nauseam?
The attitude is: Taxpayers be da*ned! They will just have to pony up some more because WE need the money to buy votes!
Since 1975 the US worker has not seen and inflation adjusted increase in wages. And since the creation of the fed the bubbles have been bigger, while the national debt has jumped in its percentage of GDP.