The Other Chris sent the link to a New York Times piece: Foreclosures Mark Pace of Enduring U.S. Housing Crisis. Here are some key quotes: “Every 13 seconds in America, there is another foreclosure filing. That’s the rhythm of a crisis that threatens to choke off hopes for a recovery in the U.S. housing market as it destroys hundreds of billions of dollars in property values a year.”
“Michael Barr, the Treasury Department’s assistant secretary for financial institutions, said more than 6 million families could face foreclosure over the next three years.”
“The Centre for Responsible Lending says foreclosures are on track to wipe out $502 billion in property values this year. That spillover effect from foreclosures is one reason why Celia Chen of Moodys Economy says nationwide home prices won’t regain the peak levels they reached in 2006 until 2020. “The default rates, the delinquency rates, are still rising,” Chen told Reuters. “Rising joblessness combined with a large degree of negative equity are going to cause foreclosures to increase,” she added. Anyone doubting that the recovery in U.S. real estate prices will be long and hard should take a look at Japan, Chen said. Prices there are still off about 50 percent from the peak they hit 15 years ago.”
Reader Jim H. sent this link: U.S. states suffer “unbelievable” revenue shortages
Items from The Economatrix:
Whodunit? Sneak Attack on the US Dollar
Job Competition Toughest Since Recession Began
August Trade Deficit Narrows Unexpectedly to $30.7 Billion
Oil Prices Nearly Flat as Dollar Strengthens
US Job Levels at Lowest Level in at Least Nine Years
Britain Overtakes US as Top Financial Center
10,000 Apply for 90 Factory Jobs
Jim Willie: Death of Petro-Dollar, Told Ya So!