How bad could the economic downturn get?

Things don’t always turn out the way some people think. Nevertheless, here is one assessment of the economy and the housing market that should make people stand up and take notice.

I think there are two many unknowns to make any accurate predictions of what is going to happen in the next months and years but it could get real ugly if the power brokers cannot control the situation.

clipped from www.dissidentvoice.org Many experts are now predicting that home prices will dip 30% by the end of 2008. That means that nearly 20 million homeowners will be “upside-down”, that is, they will owe more on their mortgage than the current value of the house. (Imagine owing $400,000 on a home that is currently worth $325,000!) 40% of all homeowners in the US will be upside-down by the end of next year. This is a grave systemic problem that will have widespread implications. Experts already know that when mortgage holders have “negative equity” they are much more inclined to put their keys in the mailbox and skip town. Hence, the name for this increasingly common practice — “jingle mail.” Secretary of the Treasury Henry Paulson is desperately trying to put together a national “rate freeze” to avoid, what could be, the most devastating surge of foreclosures the world has ever seen.

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Tags: economy, greedy

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2 Comments

Dave said »

Personally, I believe its rather obvious that the government via inflation is trying to bankrupt our nation, slowly so that fewer people notice. This has been taking place for a while now, but now it will begin to pick up steam.
If the dollar is dead, and the Middle class has seen their way of life dramatically reduced, they will be much more open to more government control in exchange for “the government helping them out”… Which in turn will usher in the North American Union & the Amero currency in 2010.
When the NAU happens, that will really start things in motion for all the Biblical events spoken of, regarding the anti-Christ & false prophet… Inching closer everyday!
» on January 21st, 2008 at 4:27 pm
Don said »

What they are doing now to prevent a depression will certainly end up bringing in hyper inflation down the road. Its not just the US either, inflation will be worldwide. The only answer will be a new worldwide economic system.
» on January 21st, 2008 at 4:52 pm