The “National Association of Realtors” recently released September’s numbers. Existing home sales have fallen to their worst levels in 16 years and are seeing the largest decline in property values since 1999. This strikes me as odd. They didn’t start keeping these records until 1999.
The National Foreclosure Ranking Service released its September 2007 “U.S. Foreclosure Market Report” showed a decrease from the previous month (August). It looks like smoke and mirrors to me. Foreclosure filings have increased 99% since this time last year.
According to the National Mortgage Bankers Association, 2007 mortgage origination will end 17% lower than 2006 levels while 2008 volume is projected to drop an additional 18% from this year.
So far 144 banks and mortgage companies have shut down and 130,000 employees in the mortgage banking industry have lost their jobs. Still Hundreds of Billions of Dollars in worthless mortgage loans are yet to be uncovered. Lest we neglect almost 1 Trillion Dollars in “no doc loans” are about to reset at much higher rates that will cause a flood of foreclosures until 2010.
If we were to try and place blame it should not be on the greedy mortgage companies and bankers who took advantage of the Federal Reserve Board’s 10 year policy of “easy money” through lower rates. I say no! The blame should be squarely placed on the politicians, with their tax and spend mentality, who have allowed the “Fed” to flood the world with our debased and declining fiat currency. Backed by nothing more the promise to repay, every citizen of The United States of America will be plagued by ever rising costs and a constant loss of buying power.
What was once the “World’s Currency” has been reduced to a dirty joke as we assume our new roll in the global economy as the world’s largest debtor nation.
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