If you believe government reported data, gold should be dropping like a rock.
Let's examine Government reported data:
1) According to the consumer price index (CPI), inflation is under control at 2.3%. What's not disclosed in these data, are that the CPI no longer includes the price of food and energy which is better known as the ‘cost of living.’
2) Housing and real estate data are now showing a recovery. Realty Track just reported the first annual decrease in foreclosures in more than five years.
What's not reported by Realty Track is foreclosure filings are rising, but actual foreclosures are not. Today distressed homeowners have options and plenty of time. Some distressed homeowners stay in their home for up to 2 years without making a single mortgage payment. They can attempt to modify their loan and/or short sell their property, both options take months.
3) Decreased government spending. Treasury secretary Timothy Geithner recently reported promising news. Government bailouts for banks, automakers and other industries will cost tax payers $87 Billion Dollars, that's far less than expected.
What Tim Geithner forgot to state is the $87 Billion Dollars is only the direct and public injections of capital into those failing institutions. The real cost to the American tax payer is almost four times greater.
The fact is, the Federal Reserve is now issuing/creating Treasury Bonds (T-Bonds), out of the air at an alarming rate. They're in desperate need of capital to keep up with interest payments to our creditors, and for all the bailouts.
Showing posts with label mortgage foreclosures. Show all posts
Showing posts with label mortgage foreclosures. Show all posts
Monday, May 24, 2010
Friday, October 16, 2009
Third-quarter home foreclosures hit record high
Despite concerted government-led and lender-supported efforts to prevent foreclosures, the number of filings hit a record high in the third quarter, according to a report issued Thursday.
"They were the worst three months of all time," said Rick Sharga, spokesman for RealtyTrac, an online marketer of foreclosed homes.
During that time, 937,840 homes received a foreclosure letter -- whether a default notice, auction notice or bank repossession, the RealtyTrac report said. That means one in every 136 U.S. homes were in foreclosure, which is a 5% increase from the second quarter and a 23% jump over the third quarter of 2008.
Nevada continued to be the worst-hit state with one filing for every 23 households. But even tranquil Vermont, where the foreclosure crisis has barely brushed the housing market, saw foreclosure filings jump nearly 170% compared with the third quarter of 2008. Still, that resulted in just one filing for every 5,023 households in the state -- the best record in the country.
"They were the worst three months of all time," said Rick Sharga, spokesman for RealtyTrac, an online marketer of foreclosed homes.
During that time, 937,840 homes received a foreclosure letter -- whether a default notice, auction notice or bank repossession, the RealtyTrac report said. That means one in every 136 U.S. homes were in foreclosure, which is a 5% increase from the second quarter and a 23% jump over the third quarter of 2008.
Nevada continued to be the worst-hit state with one filing for every 23 households. But even tranquil Vermont, where the foreclosure crisis has barely brushed the housing market, saw foreclosure filings jump nearly 170% compared with the third quarter of 2008. Still, that resulted in just one filing for every 5,023 households in the state -- the best record in the country.
Thursday, September 24, 2009
"The foreclosure wave is hotter than ever"
"All signs point to a new flood of real estate foreclosures that no amount of government sandbagging will prevent. Sources of trouble:
• A record 7.58 percent of U.S. homeowners with mortgages were at least 30 days late on payments in August, says Equifax, up from 7.32 percent in July. Delinquencies are not only rising from month to month, but rising at a faster pace. More than 41 percent of subprime mortgages are delinquent. (That's quite an increase from 2007, when I took heart from the fact that only 10 percent of subprime mortgages were in default. But, well, at least the glass is still more than half full, right?)
• About 1.2 million loans out there are in limbo: The borrower is in serious default yet the bank has not started the foreclosure process. Another 1.5 million are in early stages of the foreclosure process but the bank hasn't yet taken possession of the home. Counting these and loans that are highly likely to end up in default, one analyst estimates three million to four million foreclosed homes will come on the market over the next few years. And don't believe the freshwater economists when they tell you there's no such thing as a free lunch: Some 217,000 Americans have not made a mortgage payment in one full calendar year, but their lenders have yet to begin the foreclosure process.
(snip)
Put it all together, and throw in mainstream media outlets that as recently as June were calling for mortgage haircuts specifically to allow people to keep borrowing against their houses, and you've got the mother of all perfect storms mixed with the crack cocaine of third rails on steroids. The foreclosure wave may seem all tired and 2008, but it's hotter than ever."
• A record 7.58 percent of U.S. homeowners with mortgages were at least 30 days late on payments in August, says Equifax, up from 7.32 percent in July. Delinquencies are not only rising from month to month, but rising at a faster pace. More than 41 percent of subprime mortgages are delinquent. (That's quite an increase from 2007, when I took heart from the fact that only 10 percent of subprime mortgages were in default. But, well, at least the glass is still more than half full, right?)
• About 1.2 million loans out there are in limbo: The borrower is in serious default yet the bank has not started the foreclosure process. Another 1.5 million are in early stages of the foreclosure process but the bank hasn't yet taken possession of the home. Counting these and loans that are highly likely to end up in default, one analyst estimates three million to four million foreclosed homes will come on the market over the next few years. And don't believe the freshwater economists when they tell you there's no such thing as a free lunch: Some 217,000 Americans have not made a mortgage payment in one full calendar year, but their lenders have yet to begin the foreclosure process.
(snip)
Put it all together, and throw in mainstream media outlets that as recently as June were calling for mortgage haircuts specifically to allow people to keep borrowing against their houses, and you've got the mother of all perfect storms mixed with the crack cocaine of third rails on steroids. The foreclosure wave may seem all tired and 2008, but it's hotter than ever."
Saturday, February 21, 2009
Bank failure, mortgage foreclosure maps online
Maps that show state by state stats on bank failures and mortgage foreclosures. Instapuncit notes that the maps with the worst calamities are pretty much the states that Barack Obama carried on Nov. 4.
http://money.cnn.com/news/storysupplement/economy/bank_failures/index.htm
http://money.cnn.com/news/storysupplement/economy/bank_failures/index.htm
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