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   admin:

   Posted 6 months ago by

   senior admin
   Joined: Oct '09
   Posts: 385

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   Just when you thought things were turning the corner...
   looks like we could be in for a double dip recession.
   
   Here's why:
   
   #1 While the subprime crisis may be showing signs of
   stabilizing, the ARM crisis is just beginning to rear
   its ugly head.
   
   According to one business journalist:
   
   "The big wave of Option ARM resets has yet to come,
   and given the drop in home prices, refinancing won't
   be realistic."
   
   
   #2. Municipal Defaults: yep, local towns and counties
   are feeling the pinch with foreclosures and tax
   defaults draining their coffers. And when a town
   goes broke, it will put their resident's property
   even further underwater.
   
   
   #3. Commercial Real-Estate Collapse: The second
   largest chain of malls has already declared
   bankruptcy. Obligations needing refinancing
   in the commercial market are in the trillions.
   And most of them, even with positive cash flows,
   are as underwater as residential mortgages. As
   these businesses crash, they will cause even
   more unemployment.
   
   
   #4. Loan modifications aren't working. Unless
   and until there is meaningful principal reduction,
   most people getting a loan modification will stop
   making their payments if they are $100,000+
   upside down on their home. And there are A LOT
   of people upside down. There will be lots of "jingle
   mail," where the homeowner just sends back the
   keys to the bank, this year.