Thursday, May 28, 2009
The end of tax deferral
Foreclosures reach record levels
The government reported this morning that 12% of all homeowners with a mortgage in America are behind on their payments or in foreclosure. And those subprime borrowers, well they are still in deep shit as well. 50% of all ARM borrowers are behind or in foreclosure! Wow. The usual suspects of California, Nevada, Arizona, and Florida make up 46% of all new foreclosures.
I have argued for a while that the worst is yet to come. As long as unemployment continues to rise, housing defaults will continue to increase as well. There is a clear correlation between the two. Yet economists will argue that housing is/has bottomed. I disagree.
Another round of foreclosures is inevitable as long as unemployment continues to rise; so or later it will catch up. When it does, we can put in a true bottom and REALLY begin to recover. The government can continue to put a band-aid on a gunshot wound, but it’s only going to help for so long.
Wednesday, May 27, 2009
First Post
My goal is manage money through a hedge fund that I ultimately oversee. Currency exchange and commodities will become even more important in allocating assets in the future as the American dollar is on its' way to being ousted and a global depression seems imminent.