From the Associated Press:
The rate at which U.S. homeowners fell behind on their mortgage payments remained stubbornly elevated in the second quarter.
In the three months ended June 30, the number of mortgage holders 60 days or more behind on their payments was 6.67 percent, credit reporting agency TransUnion said Tuesday. That’s a big jump from 5.81 percent in the second quarter of last year, and well above the historical norm of 1.5 percent to 2 percent…
Later in the report the MSM earns its Slavish Devotion to Obama Award by spinning that late payments are rising slower than they did last year. Woohoo! We’re not going bankrupt quite as fast as we were last year! Give Obama a second term!
The fact of the matter is that unemployment is increasing and people are exhausting all resources to maintain mortgages with eliminated or reduced income – adding to the mix is the increasing willingness of people to just walk away from their “underwater” mortgage in “strategic default” (meaning you can pay for the house, but choose not to). This situation will only get worse until new ideas start to be implemented aggressively in what will amount to a bankruptcy reorganization of America’s housing market. Long time readers know my preferences, but just about anything which doesn’t involve either bailing out the banks nor attempting to maintain artificially high home prices should be on the table – we need to think and we need to act. The Keynesian dogmas of a dead, liberal economic system simply won’t do the trick.
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