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Four Years Into The Worst Crisis In History And Still No Reform

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By Barry Ritholtz - November 3rd, 2009, 5:09PM

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2 Responses to “Four Years Into The Worst Crisis In History And Still No Reform”

  1. Novemberrain Says:
    November 3rd, 2009 at 5:35 pm

    I think before any meaningful recovery in real estate prices can take root, we need to overcome three major obstacles…
    “Rebound Obstacle #1: Inventory Glut. Nearly 10% of all homes built this decade are sitting vacant, compared to a historical average of 2.2%. In total, we’re sitting on almost 10 months worth of inventory versus a historical average of four months.

    Rebound Obstacle #2: Loan Resets. Forget subprime. We’ve already worked through 80% of those resets and written down $1.47 trillion in the process. Now we’re facing a $2.5 trillion mountain of Alt-A loan resets. The first big wave hits mid-2011, with the peak expected to come in early 2013.
    Rebound Obstacle #3: Foreclosures. One in four homeowners are now underwater. If we break it out by loan type the picture gets worse – 25% of prime loans, 45% of Alt-A loans, 50% of subprime loans are severely underwater. Add in the 6.5 million Americans out of work since the recession began and it doesn’t take an Einstein to predict where foreclosures are heading.”

    Read More:

    http://www.housingnewslive.com/articles/reasons-housing-market-going-down.php

  2. msaroff Says:
    November 4th, 2009 at 4:52 pm

    Mr. Ritholtz, how do you embed Yahoo vids? I can’t figure it out.