[PraiseDoom]

$this->bbcode_second_pass_quote('MattSavinar', 'I') have one myself.

[eXpat]

I think this article in Counterpounch answers nicely the title of this thead, link here
$this->bbcode_second_pass_quote('', 'T')remors from the real estate earthquake won't be limited to housing--they will rumble through all areas of the economy including the stock market, financial sector and currency trading. There is simply no way to minimize the effects of a bursting $4.5 trillion equity bubble.

The next shoe to drop will be the stock market which is still flying-high from increases in the money supply. The Federal Reserve has printed up enough fiat-cash to keep overpriced equities jumping for joy for a few months longer. But it won't last. Wall Street's credit bubble is even bigger than the housing bubble---a monstrous, lumbering dirigible that's headed for a crash-landing. The Dow is like a drunk atop a 13,000 ft cliff; inebriated on the Fed's cheap "low-interest" liquor. One wrong step and he'll plunge headlong into the ether.

[TreebeardsUncle]

As far as the housing market goes, I expect there to be a huge increase in inventory this summer followed by a disappointing back-to-school selling season. 1.8 million Arms are expected to reset in 2007 and 2008, 1 million this year, and 800,000 next year. The buyers can't afford to buy and the sellers can't afford to sell. The sellers will react by taking their houses off the market, especially if they have substantial equity. Others, especially those with little or no equity, will go into default. I expect the prices to fall about 20% in Sacramento, reaching a low in late 08-09 when the number of foreclosures is approaching a peak.

However, expect the overall impact on demand to be moderate. Yes, more furniture stores will close. Yes, there will be less money from home equity loans to spend. Yes, construction employment will fall. However, business and government construction is still going strong. The hospitality, medical, education, and financial service sectors still have legs.
Don't rush to your cherished conclusions of doom on too little provacation so quickly.

G

[Jack]

Entirely predictable. That's why I expect the dollar to continue its decline.

Good for my investments, bad for the masses, kinda cool.

[emersonbiggins]

Mass home ownership has been state-backed since its inception. This is just one of the more glaringly explicit examples of forcing that "right" of homeownership.

[clueless]

But sadly there is no such thing as "ownership" anymore, try not paying your property taxes.
Theoretically this could be changed by the taxpayers, but obviously our society is not that smart.

[TommyJefferson]

I'm no angst-ridden Mathusian doomer elitist wishing to extinguish the NASCAR lumpenproletarit, but this kind of fascism makes me so mad I almost wish for some "resetting".

Bastards.

[Armageddon]

The government will do everything imaginable to keep this ship afloat. They will let it sink when they are ready, when they can no longer keep it afloat.

[Roccland]

Unless it's a $500 Trillion dollar check...it's gonna be like pissing on a forest fire...
However in the end one bank will reign supreme...JP Morgan.
All bow to the NWO...the Amero...and the NAU.
Just like clock work.

[Mircea]

$this->bbcode_second_pass_quote('Gideon', ' ') This is just great - our tax dollars going to bail out the fool borrowers and the pig nosed bankers. I'd rather just drive through a poor neighborhood and throw my money out of the car window.

[JohnLudi]

$this->bbcode_second_pass_quote('TommyJefferson', 'I')'m no angst-ridden Mathusian doomer elitist wishing to extinguish the NASCAR lumpenproletarit,.

[Dukat_Reloaded]

Let them refinance at a cheaper rate, house prices are still falling, instead of being foreclosed on now, they will be foreclosed in afew years time.

[Roccland]

These debtors of subprime toxic loans can't afford a fix rate mortgage...unlikely they will get a fixed rate under 8% with their FICO.
No - what we are hearing is complete and utter crap from the talking heads attemping to avoid a stampede out of CDOs.
GAME OVER.
The fat lady has left the building and her name was Bear Stearns.

[emersonbiggins]

$this->bbcode_second_pass_quote('Roccland', 'T')hese debtors of subprime toxic loans can't afford a fix rate mortgage...unlikely they will get a fixed rate under 8% with their FICO.

[Roccland]

Countrywide posts a 33% dump today.
Oh yeahhhhhhhhhhhhhh!!!!
Bring on the clowns...
$this->bbcode_second_pass_quote('', 'N')EW YORK (MarketWatch) -- Countrywide Financial Corp. reported a 33% drop in second-quarter net income on Tuesday and signaled that problems in the subprime mortgage market have spread to the highest-quality home loans.
The warning pushed Countrywide shares down more than 7%, to their lowest level in almost two years. It also weighed on the broader stock market because investors have been waiting to see if credit problems in the subprime-mortgage sector would spill over into higher-rated, or "prime" home loans.

[Tyler_JC]

Ugh, tell me about it.
My state is creating a 500 MILLION DOLLAR "refinancing pool" to help out the troubled "home owners".
We are raising property taxes so that we can hand out money to irresponsible people who bought more property than they could handle.

Can't we just throw these people into the debtor's dungeons of old?
It makes me sick.

[Roccland]

$this->bbcode_second_pass_quote('Tyler_JC', 'U')gh, tell me about it.
My state is creating a 500 MILLION DOLLAR "refinancing pool" to help out the troubled "home owners".
We are raising property taxes so that we can hand out money to irresponsible people who bought more property than they could handle.
Can't we just throw these people into the debtor's dungeons of old?
It makes me sick.

[Byron100]

$this->bbcode_second_pass_quote('Tyler_JC', 'U')gh, tell me about it.
My state is creating a 500 MILLION DOLLAR "refinancing pool" to help out the troubled "home owners".
We are raising property taxes so that we can hand out money to irresponsible people who bought more property than they could handle.
Can't we just throw these people into the debtor's dungeons of old?
It makes me sick.

[Tyler_JC]

$this->bbcode_second_pass_quote('Roccland', '')$this->bbcode_second_pass_quote('Tyler_JC', 'U')gh, tell me about it.
My state is creating a 500 MILLION DOLLAR "refinancing pool" to help out the troubled "home owners".
We are raising property taxes so that we can hand out money to irresponsible people who bought more property than they could handle.
Can't we just throw these people into the debtor's dungeons of old?
It makes me sick.

[PrairieMule]

$this->bbcode_second_pass_quote('Roccland', '[')img]http://bp3.blogger.com/_wFWqWIH-WFU/RqY_kREKi6I/AAAAAAAABq0/yLF1UUb7hb0/s320/cfc.png[/img]
Countrywide posts a 33% dump today.
Oh yeahhhhhhhhhhhhhh!!!!
Bring on the clowns...
$this->bbcode_second_pass_quote('', 'N')EW YORK (MarketWatch) -- Countrywide Financial Corp. reported a 33% drop in second-quarter net income on Tuesday and signaled that problems in the subprime mortgage market have spread to the highest-quality home loans
The warning pushed Countrywide shares down more than 7%, to their lowest level in almost two years. It also weighed on the broader stock market because investors have been waiting to see if credit problems in the subprime-mortgage sector would spill over into higher-rated, or "prime" home loans.