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Saturday, December 20, 2014
   
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U.S. mortgage-crisis to get MUCH worse in 2010-11

Articles & Blogs - US Commentary

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The shameless liars at CNN and other so-called, U.S. news outlets are again talking about a “bottom” in the U.S. housing market – and trying to entice more victims to jump in. However, the reality is that mortgage statistics show that it has been obvious all along that the collapse in the U.S. real estate market will continue to get worse until at least 2011.


With more than one in ten U.S. mortgages (of all categories) already in default, the biggest wave of “adjustable-rate mortgage” re-sets does not begin until next year – and then will remain at that peak level for at least one full year.

 

 

Keep in mind that while the U.S. government, and their media-parrots originally tried to deceive people into believing this was a “subprime crisis”, the reality is that all categories of U.S. mortgages (including “prime”) are at the highest default rates in history.


And it is over the next two years that defaults are guaranteed to get really bad.


Do not confuse what I'm saying as meaning that the U.S. housing market will “bottom” in 2011. That is NOT what these numbers say at all. What the numbers say is that the U.S. real estate collapse will stop accelerating some time around, or a little before.


After that, the U.S. market will have to slowly chew-through the largest inventory of unsold homes in history – ANYWHERE! Currently, there are over 20 million empty homes in the U.S. Many of these homes have been severely vandalized (or even burned to the ground), but these “assets” sit on the balance sheets of U.S. banksters – at valuations far above what they could ever possibly hope to receive.


Millions of these homes will simply have to be bulldozed to the ground, because there will never be enough buyers for all of them.


So, after the U.S. housing collapse stops accelerating downward, some time around 2011, at that point the collapse will gradually slow down (over a period of several additional years). At that point, after the U.S. economy has lost over $30 TRILLION of “paper wealth”, and at least 30 MILLION jobs, the U.S. housing market will almost certainly remain depressed for several additional years.


In other words, buying a U.S. house today – after the market has already declined roughly 30% - would still be one of the worst investments in history. Think about that the next time a U.S. propagandist spouts the word “bottom”!

 


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