Real Estate: horror movie in the making?
Nouriel Roubini, president of Roubini Global Economics claims that the U.S. is headed for a recession that will be “much nastier, deeper and more protracted” than the 2001 recession. While he may be ridiculed as being extreme in his position, others like chief investment strategist of Raymond James Financial, Jeffrey Saut, and Michael Larson, the associate editor of Safe Money Report, know its definitely likely to get alot worse. How bad seems to be the only thing up for debate.
Over $2.7 trillion worth of adjustable rate mortgages are resetting at a higher interest rate in 2006 and 2007. Ten percent of all home owners with mortgages have no equity in their houses, and 15% of the 2005 home buyers owe at least 10% more than their home is worth. Are we watching a horror movie in the making? That’s the idea behind the article, “Housing Bubble Horror: Markets Have Makings of a Gory Story” by Dan Dorfman. Check out the story and see if you agree.