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WELCOME TO HOUSING HELL
So, welcome to Housing Hell. Now that buyers are willing to wait one or more years before buying, there are more sellers than buyers. Interest rates, in the meantime, continue going up. Let’s also not forget the Existential Equity Extraction. With $700 billion of sub-prime mortgages written (of which 10 percent could default), $2 Trillion of ARMs set to reset, and mortgage delinquencies near 5 percent, equity to extract is vanishing ....... As the refinancing game ends and borrowing costs increase, a significant rise in foreclosures could put a few million more homes back on the already-saturated market ! When these foreclosures come, many of the homes for sale will have no equity and the seller will want a quick sale. Buyers will still be choosey, unless there is a real deal and the prices are marked down big time. The entire structure of housing prices will move lower with these forced sales. With mortgage foreclosures mounting up, it could get unbearably hot in Housing Hell : Richard Benson, www.sfgroup.org
Even with the fed feeding M3 money into the system, creating the false illusion of prosperity ~ interest rates and inflation continue to rise and the Housing market, like the twin towers, is about to collapse under its own weight.
Anytime now, the Stock Market should be reflecting this collapse putting further pressure on the housing market ~ which would explain the recent flood of money into gold and silver futures.
Richard Benson, Money Week, calls it Housing Hell and predicts we will be experiencing it within six months.
Excerpt: Consumer debt is up to $2 trillion (not including $440 billion of revolving home equity loans and $600 billion of second mortgages). Not only do consumers owe a whopping $9 trillion in mortgage debt, but home equity extraction has reached $600 billion annually.
Here's the link;
http://www.moneyweek.com/file/10891/six-months-to-housing-hell.html
Allen L Roland | 
