Tuesday, April 03, 2007

Banker's Nightmare Revisited

My graphics need some help, I'm sure it shows! This is the same graph about California foreclosures with additions from December 21, 2006. Today we hit 20,010, thats a doubling from February 1, 2007.

What you want to glean from this graph is the fact that the foreclosure rate is "accelerating at a predictable rate." What does that mean? Things are going to get a lot worse, even faster! (Double click on the graph for a picture that you can read)

Examine this graph without thinking "real estate" and visualize credit card debt that the banks have on the books. That graph would have to be similar and thats hidden from view; "You're going to live on your credit cards until they take the house." So the banks probably have a similar problem with increasing credit card debt.

Implode-O-Meter and Bakersfield Bubble have been following the death spiral of real estate financiers. There is a question that arises; "Has ANYONE lost any money on what has happened?" Here are billions going down the drain, and "Hey it ain't our money." Whose money was it then????

This thing is getting worse, and there doesn't seem to be anyone that has lost money except stock holders of the companies that closed. That to me sounds rather odd.

Real Estate lenders going out of business is one thing, but Mutual Funds and Ira's having financial problems? Hmmmmmm

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