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Staggering statistics on suburban scroomage (Also posted by RobotTrader earlier)...
Rasputin - Sat, Jul 31, 2010 - 07:32 PM
...comes courtesy of ZeroHedge, found here:
http://www.zerohedge.com/article/147-million-19-us-mortgages-have-770-billion-underwater-equity-24-trillion-total-debt-impair#comments
Going right to the "punch line", we are smacked in the face with this ten-pound-trout of a statistic:
"$2.4 trillion in total mortgage debt is impaired due to negative equity"
...which means that not only are a whole bunch of homedebting sheeple trapped in a sinking McMansion, but so too are the MBS bagholders (translation: Federal Reserve) scroomed.
And the rest of the report isn't any better.
(Ras Conclusion): Coincidentally, three years ago--when Bernanke and Stank Paulson were soothingly cooing "Sub prime is contained"--a ranting Ras was pounding out five-thousand word missives deeply detailing that approximately three-trillion fiatscos of residential real estate debt was gonna be in default.
Granted, negative equity isn't necessarily a technical default, but how many of the tens of millions of sheeps are gonna keep making the McMortgage payments on a crackerbox that is now valued at ONE-HALF the contractual mortgage?
And how many homedebtors are already not making the payments, but the banks and other "proud owners" of the loans are pretending they are current?
I'll let you decide whether or not this situation translates into more defaults and foreclosures.
[ Post Last Edited By Rasputin on Sat, Jul 31, 2010 - 07:40 PM ]
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Staggering statistics on suburban scroomage (Also posted by RobotTrader earlier)...
Rasputin - Sat, Jul 31, 2010 - 07:32 PM
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