More News
- Page Two
- News Links
Anarchives
Radio/TV
- Declare Your Independence with Ernest Hancock
Letters To Editor
- List of Letters
- Write a Letter
Join Us
Marketplace
- Buy Stuff - Sell Stuff
- Store on CafePress.com
Special Editions
RSS Feeds
About Us
Log-In

Make a Comment • Email Link • Send Letter to Editor

IPFS News Link • Housing

The Glut in the Mortgage Market: Self-Reinforced and Going Down

03-22-2010 • DailyReckoning.com

And don’t forget the “strategic default” phenomenon. Professor Luigi Zingales at the University of Chicago estimates 35% of home mortgage defaults in December were by folks who could keep up their payments, but decided it just wasn’t worth their while on an underwater property. Nine months earlier, it was only 23%. And as more people do it, the stigma once attached to it falls away. “The risk that the number of people doing this might explode is significant,” says the professor. At this point, the housing glut appears to be self-reinforcing. The Census Bureau reports at least 6.6 million households had at least three generations under one roof in 2009. That was a 30% increase over 2000.

Read Full Story

Reported By Jack Gregson

Make a Comment • Email Link • Send Letter to Editor