2,000,000 homes averaging even a whopping $250,000 in debt each and overvalued and underwater by 25% is still only $125 billion - a fly speck in the big picture - but what the heck - reports like this sell newspapers..........
Sounds like 2,000,000 NEW homeowners are going to get a good buy on a home at the expense of 2,000,000 that made mistakes.
Sucks donit.....
Your comment of the $250 billion in bad debt is based upon the selling price of the structures, I would hope you would take a look too at all the other sectors involved with job losses and stock earnings and price pull backs for....banking, construction, building materials, trucking, real estate agents, mortgage lenders. I've read and have to agree with a another couple of articles in that the net effect loss will be in the 2.9-3.2 trillion dollar range (USD) in just the US alone. Don't forget, this fiasco is going to affect global credit markets.....inflation, here, is on the way big time.
Great point. I love alarmist clap-trap. It creates opportunities to those who buy in during the panic-response, knowing things will shoot right back up a few days later. And the TV hairstyles, I mean perky analysts, will note with amazement that the market "shrugged off" the piece of bad news they were selling as a catastrophe the day before.
Did you read what I posted? Post #1? Or are you just reacting to the article?
As for me and my house; we’ll be fine. We don’t live beyond our means. :) I’ll be scooping up cheap real estate in the future.
My greatest fear is that the Government will “fix” this.