Of course Obama didn't hesitate to release his taxes, any politician who has never had a real job or worked as a builder of businesses in the private sector is always happy to release their taxes. But then again, I guess Obama made Romney's businesses happen for him. - friend of mine from NYI wanted to do a quick follow-up to yesterday's post on housing. I have been postulating since late last year that the housing market "stability" was completely a function of the foreclosure moratorium that went from the middle of last year until the mortgage fraud settlement early this year plus the low/no down payment mortgage products rolled out by the FHA - and subsidized by you and me.
Yesterday I posted an article which showed that FHA mortgage delinquencies jumped 26% from last year. Now foreclosures are ramping up:
"Thousands of foreclosures that were stuck in process due to delays over the so-called "Robo-signing" paperwork scandal are working their way through a revamped banking system and heading toward final bank repossession."Here's the report: LINK Even more troubling:
Even more indicative of this new surge in processing is that repeat foreclosures hit an all-time high in January, representing 47 percent of all starts, according to LPS. Repeat foreclosures are either failed loan modifications, or loans that banks were attempting to modify but couldn't.Delinquencies and foreclosures are ramping back up. Inventory will ramp back up as well. And then we get today's monthly existing home sales report which showed that existing home sales dropped "unexpectedly" by 5.4% to an 8-month low. It was not unexpected by me as I've been tracking mortgage purchase applications on this blog, which has indicated that home buying activity is in decline (refinancings are going through the roof because the Fed, in combination with FHA refi programs, has made money almost free with near-zero interest rates out to 10-years).
But wait, isn't this supposed to be the seasonal peak of the home buying season? If home sales are declining through the peak selling season, imagine how bad it could get for the rest of the year. And combine that with seriously deteriorating economic fundamentals and we are setting up for another housing/bank catastrophe. 2008-squared.
Circling back the quote at the top, make no mistake by thinking that I support Romney. I actually don't care who wins the election at this point because it's irrelevant. Either candidate is controlled by the banking and defense company interests that pay for their election (see Citizens United v Federal Election Commission for why this so: LINK). I wish Romney would select Herman Cain to be his running mate because then at least we would have some serious entertainment. As it is, my only interest in this election is to see just how brutal the mud-slinging will become.