The great American debt purge – Americans more stressed out about debt. Mortgage, credit card, student loan, and auto loan debt up to $13.5 trillion. Average debt per household at over $120,000.
Every man, woman, and child would owe an average of $43,000 if we divided up mortgage, credit card, student, and auto debt in the United States. Of course, this is based on the current population of 309 million. But we know this isn’t exactly accurate since an infant really didn’t charge up a credit card [...]
Most over valued region in San Francisco gets a taste of the commercial real estate bust. $3 trillion in loans starting to implode at a faster rate. Why commercial real estate will plunge FDIC insured banks into closure. Bought for $415,000 per apartment unit.
The commercial real estate bust is in full swing. This $3 trillion mortgage market is standing to push hundreds of banks into failure and adding additional strain to the embattled FDIC. Commercial real estate (CRE) is a good indicator of where things are heading economically because it is a reflection of what revenues are being [...]
Why buying a home today makes little financial sense. 3 reasons why taking on a mortgage in today’s market is deep in speculation. Are homes still over valued? Tax benefit not as big as you would expect.
It is hard for many to believe that home prices in many of our largest cities are still overvalued. Part of this distortion has to come from living in a decade long housing bubble that has adjusted the perception of value and price. But in many areas home prices are still much too high relative [...]
America’s wealthiest 25 percent of households own 87 percent of all U.S. wealth. How the middle class face growing income inequality in the new era of the psychopath corporatocracy.
A true measure of economic vitality is measured by wealth. We can look at incomes or other measures of productivity but real wealth is measured by net worth. Who controls wealth in the U.S.? According to a study from the Joint Center for Housing Studies the top 25% of U.S. households control 87% of all [...]
FDIC next government trillion dollar bailout? Since January of 2000 to October of 2007 we had 27 bank failures. From January 2008 to May 2010 the FDIC has closed down 237 banks. Why 1,000 bank failures will occur before the Great Recession is over.
The Federal Deposit Insurance Corporation (FDIC) will be the next billion and possibly trillion dollar government bailout. We have the FDIC that insures over 8,000 banks with an insurance fund that is in the negative. From 2000 to October of 2007 only 27 banks were closed down by the FDIC. Nearly eight full years and [...]
5 ways that Wall Street and the U.S. Government punish the American saver – Artificial low interest rates, understating inflation, pushing people into the stock market casino, and destroying yield on traditional safe investment vehicles.
The only savers in the U.S. seem to be the investment banks. Four of the big banks on Wall Street turned out a perfect quarter as they have managed to leverage the zero percent funds from the Federal Reserve into government securities. At the same time, middle class Americans would be lucky to get 0.1 [...]
Shadow inventory sales for years to come – 1.6 million distress sales in 2010, 1.6 million in 2011, and 1.5 million in 2012. By summer of 2011 REO pipeline will rise to 536,000.
Wall Street as usual enjoys denying facts until they become so obvious to the common person on the street. By then, it is too late to react. For example, subprime wasn’t a problem until it lit the fuse that set the global economy into a downward tailspin. Analysts at Barclays Capital are now coming out [...]
Solving the massive debt problem with more debt. American consumers carry as much debt as annual U.S. GDP. Credit card debt declines but auto loans and student loans go up?
The Federal Reserve has come to the aid of bailing out Greece. I wonder how many Americans even know that billions of U.S. dollars are going to prop up a failing European country in Greece that got into the mess they are in because of too much debt. In the end, the Euro is still [...]
California state budget and fiscal year problems assure a weak housing market and poor employment conditions for another fiscal year. $3 billion miss in April tax revenues, selling electronic freeway ad space, and 80 percent of income from volatile sources.
The state of California is entering the new fiscal year budget wrangling period. What the legislature in Sacramento was hoping for in April with generous tax revenues actually turned out to be an absolute bust. The California housing bubble bursting is still having deep ramifications for the future of the state. Unfortunately what we are [...]
The ambiguous financial state of housing – 3 issues repeating the housing bubble mistakes; Real estate psychology, down payments required, and bring back lending responsibility to immediate areas.
The overwhelming evidence of what went wrong to create the housing bubble is irrefutable. It is clear that allowing buyers to purchase a home with little to no documentation was a bad idea. So why continue doing this today? It was abundantly obvious that zero down or low down mortgages was a recipe for disaster. [...]