The Next Wave of the Real Estate Collapse

[FlyingTiger]

One of the many reasons that the bank bailouts are nothing but scams that insiders know won't work. The subprime disaster was only Phase One.

<snip>

See what's about to happen? The huge wave of subprime resets will soon be replaced by an equally-huge wave of different resets. Under "normal" conditions, this wave wouldn't be as bad as the subprime wave, because the nature of subprime mortgages is that they're handed out to homeless people, sixth graders, and the recently deceased. But housing prices will have sunk much, much further by 2010 than they had in the early months of this crisis, creating much, much bigger differences for buyers to make up.

Just in case residential real estate wouldn't be enough to pwn the American economy, we also get to enjoy the euphoric orgasm that is commercial real estate entering a major reset phase....

http://www.meltingpotproject.com/mpp/2009/04/the-next-wave-of-the-real-estate-collapse.html">Link to full explanation of the bad news

[seemslikeadream]

1. Serf's up

Thanks :hi:

[FlyingTiger]

3. Good pun.

I wish it wasn't so damn accurate....

[Double T]

2. Wonder what it will be like becoming a third world failed nation?

Guess we're going to find out.

[FlyingTiger]

4. I wouldn't say Third World so much as a worse version of...

...Japan's lost decade.

Their stagflation on steroids is probably what we're gonna get.

[thecrow]

5. Maybe we'll make history as the first

FOURTH WORLD NATION.............?

[GOPBasher]

6. If this is true, we're heading for a Right-wing Republican takeover

of government in 2010 and 2012. They'll have a field day saying, "see, Obama's policies made it worse."

[FlyingTiger]

7. Well, seeing as Obama keeps putting full trust in Geithner...

...they might actually be right.

(Paulson was just as bad, of course. But Geithner is the same breed of Wall Street-connected insider who has been trained to think that investment banks make the world go 'round.)