…. of America’s Foreclosure Wastelands.
72 percent of major metro areas saw an increase in foreclosure volume. Although some of the worst hit areas in Nevada, California and Florida improved from 2009, the foreclosure rate in these areas remains shockingly high. If not for some foreclosure suspensions due to the robosigning scandal, these numbers would have been higher.
For a frightening way to visualize the foreclosure crisis, we’re borrowing a Google maps technique described by Barry Ritholtz.
Note: If the above ‘reality check’ isn’t scary enough for Canadians knowing as we do how dependent we are on the states for buying our exports (especially Alberta) i.e. if they aren’t buying then we ain’t spending… or as it has been said, “when they sneeze, we catch the cold”, the following story makes the case that the national home price decline that has already been staggering has further to run… possibly as much as 15%-20%, before real prices reach the long-run trend and a level more in-line with fundamentals. What’s even more mind boggling is that in real terms, home prices today are comparable to 120 years ago?
With all the above in mind, I find it both strange and disturbing how almost nightly the evening news has story after story about how great both our economy and the housing market are here in Canada? When in fact, many believe as I do that it is nothing more than government initiated propaganda and that in all likelihood we will soon be heading into another recession. With respect to our housing market, pundits and many indicators alike show we are living within a housing bubble that could soon burst, resulting in major price reductions, as we have seen and continue to see happening with our neighbours down south.
Who’s fooling who when we continue to see internet news stories coming from our financial institutions, such as this one…
The truth is rarely pure and never simple.
There are two ways to conquer and enslave a nation. One is by the sword. The other is by debt.