I Told You So 55

I know that the less informed and brainwashed among you think I am an "alarmist" but I keep showing that things are far worse than I normally tell you. Today, at the "Business Insider" at http://www.businessinsider.com/, I read an interesting article, "The 20 Cities With The Most Under-The-Water Homes" or homes for which the buyers owe the lender more than the home is worth.

You have to understand the significance of the under-the-water home. It means that you have lost all of your "equity" or ownership in that home and only the lender still has any value or ownership of the home and is losing their money. You already lost all of your money in the home. At this point, the lender owns the entire home and is permitted to sell the home in order to keep from losing more of their money because your investment went bad. (Remember that I taught you about this before.)

Normally, that is exactly what the lenders do in order to keep from losing money on your investment gone wrong. But the housing problem has gotten so bad that the lenders are scared to death to foreclose on most homes and put them on the market because it will further crash the housing market to the point that the lenders will lose enough of their wealth to go broke. Let me illustrate with a quote from the site.

"Negative equity is the prime factor driving a record number of mortgage holders into delinquency. Delinquencies will lead to foreclosures, which will drive down home prices, creating more negative equity -- a very dangerous cycle."

In other words, foreclosing those under-the-water homes and putting those foreclosed homes on the market will decrease the value of all homes by increasing the supply in relation to the demand causing many homes which are currently above water to sink below the waves causing the lenders of those homes to lose even more money until, eventually, the banks go broke, just like when the housing bubble burst a few years ago. This is a very vicious and deadly cycle the banks have been trying to avoid by not repossessing under-water-homes hoping the housing industry will recover driving the value of those under-the-water homes up to where they will be above water or have a positive equity or the purchaser actually have some equity.

The recovery of the housing industry has not happened because of the failed commie programs of Obama and the banks are now reaching a point to where they MUST put at least some of those homes on the market and just pray for the best. They may be praying for the best but they have been putting this off for as long as possible because the banks know what is really going to happen. The housing prices will tumble, more homes will decrease in value until they are under-the-water causing the banks to lose more money, forcing the banks to repossess those homes and put those homes on the market further depressing the housing prices until this crisis hits absolute bottom and few banks will survive this.

How bad is this? You are not going to like this. As always, it is worse than I have been telling you. Let me list the 20 worst cities as far as percentage of mortgaged homes which are under-the-water as per the article.


% of Mortgaged Homes Under-The-Water

Las Vegas, NV


Phoenix, AZ


Reno, NV


Orlando, FL


Stockton, CA


El Centro, CA


Modesto, CA


Lakeland, FL


Port St. Lucie, FL


Fort Myers, FL


Vallejo, CA


Merced, CA


Bakersfield, CA


Jacksonville, FL


Riverside, CA


Tampa, FL


Tucson, AZ


Sarasota, FL


Melbourne, FL


Vero Beach, FL




Please notice that the national average is 23.2% or almost one in four mortgaged homes are under-the-water nationally and should have already been foreclosed on. Also note this does not include the many homes which have been foreclosed on and the banks have just been sitting on them afraid to put them on the market for fear of collapsing the housing market. Also, it is much worse than I have been telling you because, with the banks now being forced to "liquidate" current under-the-water and repossessed homes by putting them on the market, this will just drive housing prices down even further causing even more homes to sink beneath the waves, get repossessed, and put on the market driving housing prices down further. This is far, far worse than the housing situation was when the housing bubble burst a few years ago. This is easily at least 10 times worse than that housing situation was, just like I told you.

Telling you what? You have not even seen a bad economy yet because the real fecal matter has not even hit the fan yet. All we got so far was just a really bad smelling fart in the wind.

When the fecal matter does finally hit the fan, anywhere (conservatively, of course :-)) from 50% to more than 75% of the mortgaged homes in the US could easily sink beneath the waves and better than 75% of the banks could go broke because of the Clinton administration's commie laws and Obama's commie cures, both of which didn't work. We are not talking about a "super recession", just like I told you, we are talking about a super depression unlike anything that has been seen since Germany's great depression following WWI which put Hitler into power.

Oh yeah, and that is just looking at the simple picture. When you add together the rest of the mess these commie's have created with such things as our government being broke, 6 million people per year giving up looking for a job and not being counted by our commie government, the soon coming commie taxes to pay for all that commie "stimulus", which will make things much worse, rich people taking their money and fleeing the country because they see what it coming, and other things I have warned you about, what economy? Can we say, "barter system"? Can we say, "global poverty?" Can we say, "global Bastille"? Can we say, "global military coups"? You know, just like history teaches.

And you think I am being an alarmist? You better study your economics and history because they say I am more than right, I am being conservative when I warn you about what is coming soon to your neighborhood because of the idiot commie's, whom, history teaches, you will soon be throwing necktie parties for (BYOR - bring your own rope.)

Why do I now believe it is the corrupt commie's who should.....

Pray long, pray hard, pray often!!!

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