Housing Arm-ageddon: Game Over

Finally, finally, finally... The housing market bubble is bursting. It seemed like in the past couple of years, the ones that were trying to warn people of the writing on the wall were largely being ridiculed and ignored. I saw it coming too. It was very obvious we were in a housing bubble and it proved once again an old addage that I learned from stock investing: When everyone and their mother is an expert, that is the time to "head for the hills"!

Thursday, October 11, 2007

Foreclosures Doubled in September as Loan Rates Rise...

Bloomberg.com: Worldwide

There's a 10-month supply of unsold homes, the highest in at least eight years. As many as half of the 450,000 subprime borrowers whose mortgages will re-set through November may lose their homes because they can't afford the higher payments, according to a report by Credit Suisse Group.
``The truth of the matter is that borrowers are going into default as soon as they hit their adjustments...''