Monday, July 7, 2008

Housing bubble what housing bubble?


To tie into a post over at Blah3 by Invictus, somebody wanted to know where the figures are coming from about housing. I recalled seeing this chart from Bondad's blog (check the right hand side of the Blah3 blog for a link). You might need to click on the image of this chart for a larger image but it will give you a clear picture what is about to happen if we don't get our arses moving and do something about it.

2 comments:

GJG said...

Its simple enough---the banks have already made the move----they have stopped lending to just anybody and everybody, and have gone back to the old rule of thumb---if the monthly payment of your mortage is more than 25 percent of your monthly gross---you don't get the loan. and as for adjustable rate loans---forgetaboutit----. Now all we have to do is wait for housing prices to adjust to reality---which is happening very fast too, and even here in Southern California la la land, we are starting to see a few signs of the bottom being bounced on-----life goes on. ribbit, ribbit

Demeur said...

Gary you missed it again here. Click on the chart for the big picture. If banks aren't lending and those with Option ARMs and Alt-A s can't refinance in the next two years, then the subprime mess will look like a picknic compared to what is about to happen.