June 7 - Tidbit of the Day

More on the housing issue. It's a major thing in my mind. As unemployment continues to worsen, more defaults and bankruptcies to come. As interest rates rise on all of those ARM loans still out there, more defaults and bankruptcies.

Personally I believe that housing prices have a lot further to go on the downside. As interest rates increase, prices decline. That's the give and take. Always has been. The Fed hasn't been able to keep the long term rates down as they'd hoped. A spike in the past month is just the beginning. Also, as more and more people get behind in their payments, foreclosures, etc, the market is going to remain flooded with houses for sale.

http://www.businessinsider.com/henry-blodget-the-five-waves-of-the-housing-collapse-2009-6