Dr. Housing Bubble 07/22/08

[Crewleader]

Foreclosures in California: 121,000 Notice of Defaults and 63,000 Foreclosures.
Home Values Plummeting on Record Breaking Quarter.

Even though the market is once again enjoying a delusion sandwich covered in toxic mortgage mustard, the reality on the ground continues to become grimmer. Wachovia, one of the nation’s largest banks announced an $8.9 billion quarterly loss and that they’ll be slashing over 6,000 from their workforce. Oh, and the dividend is getting slashed as well. So what happens? The market of course pushes the stock up by 27%! American Express, the uber credit card company also announced problems but the market is believing that the Federal Reserve and the U.S. Treasury have some mythical powers to create money out of thin air. They do only if you own an investment bank.

Yet back in the trenches of reality, Americans are feeling the massive pinch of the world’s biggest housing bubble being pricked by the sharpest needle of all, imploding debt. That is no hyperbole. In no time in our civilized history have we seen such speculation on a global scale stemming from real estate. California is the poster boy of this housing bubble. You would think that the market would be punishing lenders even harder who have created and own such financially destructive loans yet many see this as a time to jump in. Just look at the markets. Tread these waters at your own peril.

Today, the California foreclosure numbers for the second quarter were released and they are not a pretty site. First, let us take a look at the first sign of future wealth destruction, the notice of default:

http://www.doctorhousingbubble.com/foreclosures-in-california-121000-notice-of-defaults-and-63000-foreclosures-home-values-plummeting-on-record-breaking-quarter/

[JDPriestly]

1. The comments reveal the lack of realism on the right.

I think that the right will not acknowledge its mistakes until the suffering is widespread. I hope it never gets to that point.

We have had economic downturns before. And when we do, Americans tend to vote for Democrats -- who put things more or less, sort of back together, and then somehow Republicans take over and apply their extremist economic theories. The Republican extremists stay in power until everything falls apart and then the nation turns to a Democrat for help. It happens over and over.

Of course, after the Democrats have applied drastic measures to bring the economy back from the threshold of disaster, the Republicans accuse the Democrats of overspending. What irony. The Republicans bleed us dry and then blame the doctor who heals us for applying a tourniquet to stop the bleeding. It happens over and over. When will they ever learn?

[enid602]

2. maybe not this time

But I'm afraid that Bush, realizing this trend, has decided to go one step further and make his destruction of the eceonomy so complete that traditional dem approaches to put it back together will not work.