Reader GG spotted this sobering piece: Corpse of a Thousand Houses. More foreclosures will soon be flooding the market, further depressing the housing market. This is the negative feedback loop (aka “death spiral”) that I’ve been warning about since late 2006.
From El Jefe Jeff E.: US large-loan bank losses triple to $53 billion; Regulators say US lenders expected to lose $53 billion in 2009 on loans larger than $20M. Jeff’s comment: “53 Billion is a lot to lose, and they were ‘surprised’ by the losses….I wonder what else is lurking that will cause these banks more surprises.”
Also from Jeff E.: Economists React: “A Surprising Decline” in Orders
Reader Mike W. sent this advice from The Motley Fool on the US Dollar: Get Out Now!
Items from The Economatrix:
What’s The Real Reason Banks Aren’t Foreclosing?
Yen Hits 8-Month High on “Baffling” Fujii
Iceland One Year Later: Little Island, Big Trouble
Savers Losing Faith in Banks
Greenspan: The Fed is Above the Law And Answers to No One
No G-20 Reform, Just Cosmetic Patches
Money Figures Show There’s Trouble Ahead
FDIC Bank Failures to Cost Around $100 Billion
Oil Prices Dip With Consumers Leery Over Economy