Heh.
And you think it is bad now!
At least the main stream media is finally getting it.
Heh.
And you think it is bad now!
At least the main stream media is finally getting it.





^^^ and just think, they aren't even considering the wave of huge dollar commercial real estate mortgage defaults that is just launching ... as a result of retail store closures, office staff cutbacks, relocations / outsourcing etc. There are some HUGE commercial properties that are going to go belly-up in the very near future i.e. shopping malls, upscale apartment complexes, marinas, condos, hotels/motels, hell even casinos aren't very profitable these days !!!
Of course the subject of your link was 'Alt-A' mortgage defaults. The 'tin foil hat' crowd will tell you that this is the indirect result of gov't induced 'moral hazard'. Why should an otherwise responsible borrower who is sitting on a mortgage that is $100k-$200k 'underwater' pass up the opportunity to cut their losses if the gov't has removed all penalties associated with 'forgiven debt' being considered as taxable income ? By simply ceasing to make mortgage payments, they can also live rent-free in their house for at least 6-9-12 months while the banks are prohibited by the gov't from foreclosing. And thanks to gov't anti-discrimination laws against bankruptcy filers, 3 years down the road they will wind up in a significantly better financial position than if they had 'toughed it out' !!! Of course, a bankruptcy filing might not even be necessary if Obama's tentative plans for foreclosure prevention / homeowner bailouts become reality.
~
Last edited by Melonie; 12-16-2008 at 09:29 PM.
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