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General News    H2'ed 3/11/10

Foreclosures on the Rise: Bankquakes, Not Earthquakes

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Message Danny Schechter


FORECLOSURES ARE RISING AND NOT JUST HOMEOWNERS ARE AFFECTED

A Haitian Story: Loses Family Home In Earthquake, NY Home in "Bankquake"

By Danny Schechter

Author, The Crime of Our Time

The financial crisis started as a housing bubble with the financial industry convinced that home values never fall. How wrong they were even a they leveraged and securitized their investments to create a global crisis.

Now, brace yourself because not only isn't over until its over but in some respects its just begun. There will be more foreclosures this year than last and as a result more suffering for American families

Ed Harrison who monitors this industry for a website called Credit Write Downs sees a "second wave coming"---like a new tsunami in a industry that All of Obama's horses and all of Obama's Men have not been able to do anything about. The idea of challenging fraud and deception with a debt relief plan goes a bit too far for these self-styled centrists.. Writes Harrison;

"When the crisis first developed, in February of 2007, it was subprime where the worries were, with the lion's share of writedowns coming from mark-to-market losses in the securitisation market. However, subprime was a relatively small part of the overall market, making up 14% of loans outstanding at that time. Alt-A loans were 27% and prime loans were 57% respectively of loans outstandingaccording to a Banc of America Securities report.

As the 2004-2007 co-horts of Alt-A option ARM mortgages have started to reset and prime borrowers have come under stress, we have started to see defaults in markets which are an order of magnitude larger than subprime."

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News Dissector Danny Schechter is blogger in chief at Mediachannel.Org He is the author of PLUNDER: Investigating Our Economic Calamity (Cosimo Books) available at Amazon.com. See Newsdisssector.org/store.htm.
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