Took the title from Eminem’s Will the Real Slim Shady Please Stand Up!
Banks are keeping 90% of their inventory off market. Foreclosure related sales are around 34% of current total home sales nationwide. There are 33 delinquent mortgages for every foreclosure in Ohio. Prices are for the most part flat at best nationwide. If the market can barely gain trying to absorb the 10% of REO now, what will happen to prices upon release of the other 90%?
So, here we are in another liberal induced touchy feely, slap each other on the back because the Messiah has been Crowned again delusion. Folks, while the Federal Reserve Board has everyone drinking the Kool Aid, the reality is that we are in some pretty deep sh*t! You don’t have to be a math major to figure out what is going to happen when the flood gates open. Make no mistake whatsoever, the Gates have to open up! The banks can only hold the Tide back so long.
Simple math is also the lynchpin of my next article dealing with why what the Fed is doing is going to destroy any hopes for retirement any of us may have. Look, with interest rates a bottom gutter levels (0-3 percent depending on how you spin it) that means that your Return on Investment in a conventional account is going to make jack.