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:
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
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.
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