Fed Official: Foreclosures No Better In 2011

[marmar]

from 24/7WallStreet:




Fed Official: Foreclosures No Better In 2011
Posted: November 13, 2010 at 8:42 am


Foreclosures, along with unemployment, are the plague that continues to bedevil the economy. The problem has caused the collapse of Fannie Mae and Freddie Mac, which could eventually cost taxpayers over a half a trillion dollars. The housing problem was also a major contributor to the credit crisis. And, beyond foreclosures, a drop of home prices, which exceeds 40% in some markets, has stripped away trillions of dollars in consumer net worth which has left millions of Americans without any equity left in what was once their primary asset.

One of the governors of the Federal Reserve, Sarah Bloom Raskin, says the worst is not over.

“Our projections remain very grim for the foreseeable future: All told, we expect about two and one-quarter million foreclosure filings this year and again next year, and about two million more in 2012.”

Raskin goes on to describe the issues with “robo-signing”, the tension between mortgage holders and mortgage services, and the drop of home prices on consumer activity and retirement. But, she offers no concrete solutions

The comments do point to a much longer and deeper period of slow growth and a possible double dip recession. Many economists believe that the mortgage and housing markets will recover next year, perhaps rapidly. If that does not happen, the problem, coupled with unemployment, which could remain above 9% for another several quarters, could kill any move up in GDP growth.

Fed governors and regional presidents have already began to publicly break with Ben Bernanke on QE2. Some of the same officials have also begun to paint a picture of the economy which is worse than the Fed’s party line.

Important voices within the body of the agency have now war with one another about the state of a recovery that seemed promising at mid-year.

-- Douglas A. McIntyre


http://247wallst.com/2010/11/13/fed-official-foreclosures-no-better-in-2011/#ixzz15DEw3CDY

[Subdivisions]

1. Great Depression 2.0? n/t

[kenny blankenship]

2. No, no! The MODERATE Depression

"Greatness" is a position or ambition of ideological extremists!

[lunatica]

3. Well I just started the foreclosure dance of death with my mortgage company

So I sure don't see a bright future.

[Mojorabbit]

4. Here is the chart I saved from 09

and why the 2012 election will not be easy for us