US, world headed for 25 year depression: Jim Rickards

US, world headed for 25 year depression: Jim Rickards

“When I use the phrase 25 year depression, it sounds extreme but it’s not. We had a 30 year depression in the United States from about 1870 to 1900…The Great Depression lasted from about 1929 to 1940. The U.S. is in a depression today.” Well, it's been in the works for

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Canadian banking haven myth exposed

Canadian banking haven myth exposed

"One of the reasons that Canadians (and international commentators, other finance ministers and global financial institutions) buy this Canadian banking fairy tale is the way the government accounts for the money borrowed to support the banks." The sorry spectacle of Conservat

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Get rid of your mortgage, loans, because interest rates set to rise

Get rid of your mortgage, loans, because interest rates set to rise

Get rid of your loans, guys and gals, because we are going into a high interest rate period. Very high. It will be the equivalent of going into the double digit interest rates we had in the 80s where many people threw their house keys at the bank and we had record numbers of ba

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E-cigarettes save lives, money

E-cigarettes save lives, money

"We know that cigarettes have thousands of chemicals in them and we know that they are killing us. They have been for over a hundred years. So now, the e-cig industry comes along with only one or two chemicals in their mixture and people are freaking out over these as well. Whe

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US inches closer to big bank charges

US inches closer to big bank charges

Federal prosecutors are nearing criminal charges against some of the world’s biggest banks, according to lawyers briefed on the matter, a development that could produce the first guilty plea from a major bank in more than two decades. In doing so, prosecutors are confronting

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Canada’s home sales top predictions; why a real estate crash is inevitable

Canada’s home sales top predictions; why a real estate crash is inevitable

“The assurance of relatively low borrowing costs has likely given home buyers confidence while rising home values have kept new listings at a healthy level. Stable employment has provided some assurance to owners and buyers alike.” Our website is back after many months of

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Comparing today’s recession/depression to the 1980 recession

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Why savers are getting screwed

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Geithner admits USA bankrupt to US Senate

Geithner admits USA bankrupt to US Senate

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World economies on verge of currency revaluations to deal with debt

World economies on verge of currency revaluations to deal with debt

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US raiding foreign countries with dollars, not soldiers

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Content By: The Coming Depression Editorial Staff (dates cited below)
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us cities underwater mortgages

More than 11.3 million homeowners — nearly one-fourth of all Americans with a mortgage — owe more on their loan than their home is now worth, according to a report released Tuesday by FirstAmerican CoreLogic.

As long as

  1. real wages for the working class decline
  2. good paying middle class jobs are outsourced for cheap labor
  3. government refuses to reign in “casino financiers”, instead of rewarding them
  4. government policy is controlled by corporations
  5. lobbying remains legal in government business
  6. “bailouts” are given to corporations, with no commitment to bring jobs back, but rather encourage more layoffs (Chrysler, GM etc) and more outsourcing.
  7. governments undermine labor siding with, and publicly negotiating for corporations
  8. banks and financiers write economic policy
  9. deregulation continues unabated
  10. free trade is abolished, and fair trade instituted

.. there will be no meaningful recovery. The wealthy and the elite will grow richer on the backs of the middle class, if one remains.

The other issue is subprime mortgages. When subprime mortgages were getting popular, many state governors stepped in to stop it. In return local state banks would associate themselves in partnerships with federal banks so that state laws would not apply to them. When states appealed to the Federal Government under the leadership of Bush, directive would come from the government to allow these banks to continue their ponzi practice. Florida, participated willingly in this ponzi scheme so of course when it falls they are one of the worst affected.


11.3 Million Homeowners Underwater on Mortgage

WASHINGTON (MarketWatch) — More than 11.3 million homeowners — nearly one-fourth of all Americans with a mortgage — owe more on their loan than their home is now worth, according to a report released Tuesday by FirstAmerican CoreLogic.

More than 10% of people with mortgages owe 25% more than their home is worth.

The number of underwater mortgages increased by about 620,000 from the third quarter, the firm said. Another 2.3 million mortgages had less than 5% equity in their home, which could be wiped out if home prices fall further.

housing bellwether graph price drop coming

Jayan Dhru, Standard & Poor’s global head of Financial Services Ratings, says U.S. banks are still in recovery mode as they manage the credit cycle while reducing leverage and risk. Reforming the banking sector will have unintended consequences on the broader economy.

In the fourth quarter, national home prices fell 1.1% compared with the third quarter, Standard & Poor’s reported in a separate report on Tuesday. See full story on Case-Shiller home price index. You can read the full story from MarketWatch news.

Related posts:

  1. US Homeowners: Sell your home now!A year from now you won’t be able to sell your house. Yes, you read that right. The caveat is (there always is a caveat) that if you have enough...
  2. Academic says underwater homeowners should throw keys at bank; arson, insurance fraud on rise as defaults increase” Go ahead. Break the chains. Stop paying on your mortgage if you owe more than the house is worth. And most important: Don’t feel guilty about it. Don’t think...
  3. US home prices drop further; Canada’s pending housing collapseA steep drop in house prices in the United States has revived fears of a “double dip” in the housing market. House prices in the US dropped 1.3 per cent...
  4. Foreclosures: Worst 3 months of all timeThe fact is that many of these mortgages, people would never have been qualified for a $ 200 to 400K loan. These owners are too deep in water and even...
  5. Home prices to collapse again: Peter SchiffThe longer the government continues to distort the underlying economics of the real estate market, the longer it will take for the sector to heal itself – and the longer...
  6. Update: Jobless benefits denied to 1+ million AmericansThey did it! The government of your nation did it! They just turned their backs on over a million people on unemployment and denied the extensions! Congress, in the most...

This entry was posted on Wednesday, February 24th, 2010 at 11:40 pm and is filed under Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

2 Comments

  1. February 25, 2010 @ 12:48 am


    First American CoreLogic is part of First American Corporation, which has outsourced tens of thousands of middle-class jobs to Asia over the past 15 years, while management awards themselves big bonuses for reducing expenses. (i.e. reducing the American way of life).

    Posted by David
  2. August 30, 2010 @ 11:57 pm


    Take a close look at this pimple of a ( man? ) He has an obvious case of HEAD UP THE ASS CONSTIPATION syndrome. Watch his ( face? ) In his quest to be heard, this rejected headlice acts as if he is and always will be a profoundly intelligent godlike entity that has solved the greatest mathamatical equation ever sought after by all of mankind. He is wrong—- and I just dont like a know-it-all. So piss off!!!!!!!!!!!!

    Posted by nobodyatall

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