{"id":3097,"date":"2008-01-20T17:50:57","date_gmt":"2008-01-20T22:50:57","guid":{"rendered":"http:\/\/www.thepropheticyears.com\/dddblog\/2008\/01\/20\/how-bad-could-the-economic-downturn-get.html"},"modified":"2025-06-13T04:52:51","modified_gmt":"2025-06-13T09:52:51","slug":"how-bad-could-the-economic-downturn-get","status":"publish","type":"post","link":"https:\/\/www.thepropheticyears.com\/wordpress\/how-bad-could-the-economic-downturn-get.html","title":{"rendered":"How bad could the economic downturn get?"},"content":{"rendered":"

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.<\/p>\n

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.<\/p>\n\n\n\n
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clipped from www.dissidentvoice.org<\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
Many experts are now predicting that home prices will dip 30% by the end of
\n2008. That means that nearly 20 million homeowners will be \u201cupside-down\u201d, that
\nis, they will owe more on their mortgage than the current value of the house.
\n(Imagine owing $400,000 on a home that is currently worth $325,000!) 40% of all
\nhomeowners in the US will be upside-down by the end of next year. This is a
\ngrave systemic problem that will have widespread implications. Experts already
\nknow that when mortgage holders have \u201cnegative equity\u201d they are much more
\ninclined to put their keys in the mailbox and skip town. Hence, the name for
\nthis increasingly common practice \u2014 \u201cjingle mail.\u201d Secretary of the Treasury
\nHenry Paulson is desperately trying to put together a national \u201crate freeze\u201d to
\navoid, what could be, the most devastating surge of foreclosures the world has
\never seen.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
<\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

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 […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[95,37],"tags":[187],"class_list":["post-3097","post","type-post","status-publish","format-standard","hentry","category-dangers","category-financial-collapse","tag-economy"],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/pawsE-NX","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.thepropheticyears.com\/wordpress\/wp-json\/wp\/v2\/posts\/3097","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.thepropheticyears.com\/wordpress\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thepropheticyears.com\/wordpress\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thepropheticyears.com\/wordpress\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thepropheticyears.com\/wordpress\/wp-json\/wp\/v2\/comments?post=3097"}],"version-history":[{"count":1,"href":"https:\/\/www.thepropheticyears.com\/wordpress\/wp-json\/wp\/v2\/posts\/3097\/revisions"}],"predecessor-version":[{"id":6780,"href":"https:\/\/www.thepropheticyears.com\/wordpress\/wp-json\/wp\/v2\/posts\/3097\/revisions\/6780"}],"wp:attachment":[{"href":"https:\/\/www.thepropheticyears.com\/wordpress\/wp-json\/wp\/v2\/media?parent=3097"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thepropheticyears.com\/wordpress\/wp-json\/wp\/v2\/categories?post=3097"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thepropheticyears.com\/wordpress\/wp-json\/wp\/v2\/tags?post=3097"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}