One of our favorite don't ask, don't tell topics in the finance world is the foreclosure mess. Call it Foreclosuregate , the Credit Crunch or the Housing Crisis it just will not go away.
Simply put for greater econ minds than mine:
When you base your wholesale economic growth on property being just another giant credit card, you are going to be SOL when said property (ies) cease(s) to appreciate in value.
As much as we want to bury our hamster noses into the ground and diligently burrow to a better day, it ain't happening on the wholesale level until the housing market improves.
Last week, a significant event occurred in this tedious process.
U.S., both took a face dive in the Supreme Court of Massachusetts when it was deemed that they were not the legal mortgage holders at the time of foreclosure;making their ability to foreclose and collect ...nil.
This case, which (for our legal buffs and lawyers) looks to become the holding precedent in such adjudications may spell great/terrible news, depending on the perspective you hold in this regard.
As many of you here, I hold the firm and simple belief that borrowed money need be repaid. Many times in the past I have shaved valuable months and years off of my own life clock to repay debts that nobody could have ever forcibly collected upon.
I did this because it was the right thing to do, in spite of it being a burden upon my own selfish interests.
That having been said, when you reneging on $5,000,000,000 worth of their own mortgage obligations, it gets tougher and tougher to take the hard banker line...for me, at least.
Curious where you guys stand now that the Credit Crunch is (supposedly) in the rear view.
Where do you see the housing market going from here?
What sort of recovery will come about with housing markets continuing to languish?
...and most importantly...
Are you prepared for the aftershocks of a massive wave of planned foreclosures?