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Originally Posted by scottybuzz
thanks greywolf nice stuff, also do you have anything really recent?
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Here's a few more recent comments - both from Schiller and a number of other people...
Major Turning Point?
US Recession in 2007 - Third Leg of the Bear Market Likely
The Culture of Entrepreneurship
http://www.fundmasteryblog.com/category/economy/
Foreclosures and Financial Ruin: How Bad Will It Get?
There is also a nice article in Barron's mag earlier this year (tried to find it but no luck so far) - it was titled "House of Cards". Basically their report was saying that the current ploy is avoid any ripples, keep a positive perception and show enthusiasm publically to "keep the good times rolling". In fact, at around May 2007, their stats showed that almost 50% of folks with ARM's (Adjustable Rate Mortgages) were already into negative equity on their homes and, financially, this totalled $1.4trill of deficit. Since then, and most likely during 2008, this deficit will increase, so basically talking about serious money and a fair degree of hardship for many people. This is obviously hitting back on banks/financiers and likely to see more substantial write-off's. So far there have been approx $800billion in foreclosures and fairly reasonable to assume the current suggestions that another $1trill may be wiped next year. (Some courts are backlogged in processing foreclosuring proceedings.)
The credit crunch has already started and folks who wanted to get out of ARM's are going to find that harder. It's ironic that the same predatory banks who financed the sub-prime market are the same people less willing to extend funds for remortgages and allow an escape route.
At the same time, the UK is likely to have a touch of sub-prime impact there. A few banks have been playing the sub-prime game and the effects will show more during 2008, but nothing like the hit on the US.
Never trust banks or "financial advisors" and avoid credit card companies - "leeching" would be an understatement
