Thursday, December 17, 2009
A Second Wave of Foreclosures
This chart, which you see above in this blog post, illustrates the second wave of mortgage defaults that are coming. However, there is a thing called "Early Option ARM" and these loans are negatively amortizing already and so it is reasonable to expect they will be reseting early, like now, not next year. Sometime in the next 3 to 12 months, we will see another wave of massive foreclosures. Do you see how debt works yet? Do you see how destructive it is? Economically and politically?