U.S. Foreclosures Double as House Prices Decline

A foreclosure sign is posted outside of a home in Loganville, on July 9, 2008. Photographer: Chris Rank/Bloomberg News

Highlights

• U.S. Foreclosure: Filings more than doubled in the second quarter from a year earlier.
• New Home Sales - Commerce Department: today reported that new home sales fell less than expected, and a Standard and Poor's measure of homebuilder stocks rose as much as 6.1 percent.
  
• Uncertainty: ``I believe a big part of the problem we're facing in the market right now is uncertainty,'' Sharga said. ``Buyers aren't sure if this is the right time to get in, lenders aren't sure where to lend, investors aren't sure where to put their money in an environment of depreciating assets. The psychology of the market is as responsible as the financial part of the market.''
• Bill Gross, manager of the world's biggest bond fund at Pacific Investment Management Company: "believes about 25 million U.S. homeowners risk owing more than the value of their homes."

Comments

Stop the bleeding: Can anyone please stop the the price depreciation bleeding. Like a boat taking on water, we have a huge rip in the side of the USS United States of America and we are trying to pump it out with a few buckets. Nothing changes regarding the Credit Crisis until we address the main issue of stabilizing the real estate pricing.

Housing Deflation - Yep, you have to go back to the Great Depression to find housing number like the one's we are seeing now. Hum mm, Federal Reserve is thinking about inflation and possibly higher interest rates. Treasury department is advocating banks tidy up their portfolios resulting in a significant amount of De-Leveraging of credit positions world wide. Profit margins are getting squeezed an unemployment is rising, middle and lower sector wages are not rising, and State and Local Governments are experiencing slow downs forcing them to either raise taxes an or cut expenses.
Bake for another 6 months to a year and we will all be financially cooked.

No Easy Way Out: No law or single individual is going to get us out of this economic mess quickly. Be prepared to start thinking how to protect your economic portfolio and assets because as the smelly stuff continues to hit the fan, you will be the last to know if you aren't paying attention.

Jim