You ain't seen nothin' yet.Think the worst is over?Buying into the green shoots b.s. being spewed by the White House and the major economists?Sucker!
So many people have gone over these numbers and charts,yet some people just refuse to face the hard data out there.Just look at them again and live in denial at your own peril,at least if you're an investor.
Bank of America has been unloading an average of 7,500 foreclosures onto the market each month.They now plan to really ratchet it up.All the way up to 45,000 per month by the end of this year.That's a 500% increase!Wow!
That's only one bank.JP Morgan Chase is planning on perhaps doubling their contributions as well going from 23,000 to between 33,000 and 45,000 by the end of the year.
Home prices have dropped again,down 3.9% in the last quarter,the first drop in 9 months.The February foreclosure rate of 3.31% has increased over 50% in the last year.
There are currently 8 million homeowners behind on their mortgage payments.Take the existing foreclosure inventory on the market,add in the planned huge upswing in inventory being added to the market by the end of the year,and further factor in the 8 million potential future defaults and you have the recipe for a total collapse of the housing market.
At the end of this month,Bernanke will end the quantitative easing program that dumped over a trillion dollars into the market to stabilize the losses.The number of ARM resets will spike up again this summer and also again next summer leading to even more defaults.
With unemployment remaining high,there is just no prospect of staving off the avalanche underway of defaults flooding the market.The numbers don't lie.More to come...