Thursday, March 06, 2008

Remain calm, all is well ! Yeah sure.....

Some observations-

- For the first time since 1945, on average, American homeowners equity in their homes has fallen below 50%. Which means that the amount of debt owed on their homes exceeds the amount of equity in the home.

- Foreclosures hit a new all time high in the 4th quarter of 2007. And the number of homeowners 30 days or more late making mortgage payments is at the highest level since 1985.

- Inflation fears are increasing, the dollar is continuing to fall against the Euro.

- The stock market continues to drop in response to warnings of bank / mortgage related layoffs and bankruptcy fears.

- Oil keeps going up because traders (aka:greed mongers) get scared every time some one blows their nose in a 3rd world country.

Now can you tell me again Mr. President how we are in a 'slowdown' with no danger of heading for a recession? Curious that actual financial experts say we are already there....

Remember, it doesn't really matter what the experts say, like a self-fulfilling prophecy, if a majority of average American's think we are in a recession......then we are ...

Hold on, the ride is just beginning.

UPDATE BY KEMP: If I may add to Scott's post here, consider that the Federal Reserve announced this afternoon that Americans’ percentage of equity in their homes "fell below 50 percent for the first time on record since 1945” that caused the website to estimate that “8.8 million homeowners, or about 10.3 percent of homes, will have zero or negative equity by the end of the month.”

Interesting... I guess people just "built too many houses", huh? It’s the only possible explanation...

No comments: