U.S. home foreclosure filings
a new record in April 2008 subject to a plus of 65% over the previous year and placing municipalities at risk by cutting the value of the property on their tax rolls. The U.S. Foreclosure Market Report was on May 14.2008 by RealtyTrac, an online marketplace that tracks foreclosed properties published.
There are very few optimists who think the worse of the financial crisis, appear to be over. This would also U.S. Secretary of the Treasury, Hank Paulson. Recent data suggest that different and foreclosures will continue to increase next year to 18 months. It is difficult to see the U.S. economy is doing well, when a massive number of foreclosures are dragging the value of the entire U.S. housing market.
Communities in the hardest-hit states like California, Nevada and Florida, which cut its sales drop sharply as the tax revenue. Foreclosed properties reduce the value of the property taxed. Dipping home values reduce the money that the cities, villages and towns collect in property taxes and still causes a financial crisis.
The April foreclosure rate “the highest monthly total we’ve seen since we began issuing its report in January 2005,” said chief executive James J. Saccacio in a statement. “The City Council voted in Vallejo, California, part of a metropolitan region with a rate that foreclosure sixth highest rank in the nation in April of last week in the city have to file for bankruptcy,” said Saccacio.
The gross margin for an extension of mortgage debt, credit card debt, debt and the economy that has occurred in the last twenty-five years, will not be solved overnight. When debt is pop the consequences of the housing bubble be deleveraged go with us for very long time.
The stock market has also previously held only by the enormous injection of liquidity into the banking and stock brokerage system by the Federal Reserve Bank. As a result of stock market investors have not the reality, the conditions in housing markets deteriorate and so far think that the mortgage crisis will only be of short duration continue to face.
This rosy perception is likely to be reviewed and discarded, as the foreclosure rate remains high. As property values fall in banks are continuing to come under increasing pressure. It seems to me that the use of current market price rallies to sell shares, the wisest course of action.
When it comes to real estate investing and picking the bottom of selected features of the best values are probably yet to come. Real estate prices will probably fall further in the next year or two. So far in 2008, according to the National Board of Realtors (trademark), the property prices have fallen by 7. 7%.
It is important to note that this is not an ordinary economic slowdown or recession period. The over extension of credit lines, high debt and the misallocation of capital structure for many years. The correction is probably a long and difficult.
The fact that the Fed’s actions of pumping more credit into a system that is ill, simply because there is not too much credit reassuring. The Fed’s actions are so far largely responsible for the yet another bubble in commodities. It will be tragic unintended consequences as a result of the fat cat of the Fed’s recent rescue efforts.
The product can bubble bubble is the most dangerous of all as excess liquidity help, stable prices for commodities such as wheat, corn, soybeans and rice to record highs. Food riots are already breaking out all over the world as billions of poor people eat out of the situation at reasonable prices. Even in the United States with low income, the centers try to help people with food, with almost bare halls overcome.
While the Fed can the water in the Fat Cat Banking and stock trading communities, he will take the stage for violent conditions and food riots that governments have set around the world, be able to have calmed down.
As additional foreclosures take place, placing additional financial burdens on the international banking system the Fed and other central banks can cause inflation takes hold of the money supply at rates of hyperinflation. This would also pay higher prices for raw materials than we are currently experiencing, reinforcing a vicious feedback loop.
The resulting food price inflation would be enormously destabilizing. If a large number of countries starving population is anything can happen. Much more trouble for the global financial markets and political systems is almost certainly on its way.
