Treasury: Millions more foreclosures coming

The Assistant Secretary for Financial Institutions Michael S. Barr gave written testimony before the House Financial Services Committee today that put things into perspective.

[W]e recognize that any modification program seeking to avoid preventable foreclosures has limits, HAMP included. Even before the current crisis, when home prices were climbing, there were still many hundreds of thousands of foreclosures. Therefore, even if HAMP is a total success, we should still expect millions of foreclosures, as President Obama noted when he launched the program in February.

The thing to keep in mind is that there is no chance that HAMP will be a total success.

The Coming Foreclosure Wave

Has housing hit a bottom? Fox News declared that the bottom is in, as had many other talking heads.

In fact, the reality of the situation is a "good news, bad news" scenario.

(Bloomberg) -- The wave of “option” adjustable-rate mortgages recasting to higher payments, projected by some economists to represent a looming source of foreclosures that will hurt housing markets over the next few years, will be smaller than “feared” because many borrowers will default before their bills change, Barclays Capital analysts said.

So you see, the coming tsunami of foreclosures will be much small than expected because people are going to go broke beforehand. That's the good news.

Ding, Ding - Real Estate Round Two.

No good news, No happy days are here again, No bottom in the housing market.

Leg Two Down

After that little head fake of an uptick in sales for March the RE market is resuming its downward trend. Those that still listen to the screaming heads of CNBC and FAUX news bought into this garbage journalism and unfortunately are going to pay dearly.
The housing crash that began with the subprime collapse in the summer of 2007 is set to resume this summer ... only this time .... higher up the food chain.
Even while the media was touting a bottom in housing as evidence by the uptick in sales, foreclosures were setting new records in March and April.

April was the second straight month with more than 300,000 households receiving a foreclosure filing, as the number of borrowers with mortgage troubles failed to abate.

Plan 9 From Outer Space is Plan B

plan 9 from outer space
Now that the bail out and throwing money to Wall Street for bad debt isn't doing much, today we had a coordinated rate cut from central banks across the globe.

More money is proposed so Americans can go shopping instead of producing and AIG gets another $38 Billion.

Considering the magnitude of imminent Economic Armageddon, in last night's debate what do we get?  Spend, Spin, Platitudes and our favorite distraction, tax cuts. I often think we would be better with static and noise emanating from the idiot box than this absurd, vague drivel or deflection through attack to avoid the specifics on what will they do.

While We Watch Our Senate Sell America Down the River....

Let's take a moment to watch some videos on what is really happening on main street. Note, by voice vote the entire Senate turned down Bernie Sander's attempt to get the people who got filthy rich from this for it. Nope. Senators instead turn reality on it's head and claim they are not doing what they indeed are doing...bailing out Wall Street.


This one is about a Southern California Area Called the Inland Empire: