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Thursday, April 09, 2009


foreclosures in the pipe

via zero hedge and field check group -- the suppressing effect of prior foreclosure moratoria are rolling off over the next few months.

The bottom line is that there is a massive wave of actual foreclosures that will hit beginning in April that can’t be stopped without a national moratorium — this wave is so big I would not put it past them trying it.

CA foreclosure background - in mid-2008 the foreclosure wave was artificially held back as a result of the CA law SB1137 enacted in Sept 2008. This also kept NOD’s and NTS’s at much lower levels than the actual defaults that were occurring. Other bubble states and several banks/servicers also went on random moratoria and the foreclosure wave was held back for the past six months. But just like so many other intervention and moratoria in the past, the problem just comes out the other side even more violent than if they would have done nothing. Adding insult to injury, the GSE’s announced this week that they were coming off moratorium, which could increase foreclosures by 20-25% alone.

particularly interesting to see that higher-end middle class properties are starting to come through foreclosure at titanic levels.

i've recently remarked on falling absolute levels of inventory in housing in spite of accelerating price declines as a possible intermediate-term precursor to a bottoming process. information like this is a good reason to defer judgment for the time being. the foreclosure problem is clearly still accelerating along with price declines, interrupted only by temporary legal injunctions.

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Jct: And just think, the banking foreclosure industry was almost shut down without that great infusion of cash from Obama to make sure they keep doing their jobs of dispossessing Americans.
That's why people have no choice but to jump to alternative community currency lifeboats.
Best of all, when the local currency is pegged to the Time Standard of Money (how many dollars/hour child labor) Hours earned locally can be intertraded with other timebanks globally!
In 1999, I paid for 39/40 nights in Europe with an IOU for a night back in Canada worth 5 Hours.
U.N. Millennium Declaration UNILETS Resolution C6 to governments is for a time-based currency to restructure the global financial architecture.
See my banking systems engineering analysis at with an index of articles at

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Fannie and Freddie announced that they did away with an outright ban on foreclosures only to replace it with a "stay in your home free" card program that requires people to file paperwork to apply for modifications.
No word was given as to how many times a person could apply for modification.

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