Friday, April 09, 2010

The Recession v. Home Prices and Rents

MSNBC (really!!!):

More than 1.2 million households [have been] lost to the recession, according to a report issued this week by the Mortgage Bankers Association that looked at data between 2005 and 2008. That number doesn’t include information from 2009, when job losses and foreclosures continued to rise.

So it’s likely that the full impact of the 8.4 million jobs lost and nearly three million homes foreclosed on since the recession began has taken an even bigger toll on the number of American households

That actually hits both home prices AND rents. We're not exactly in an inflationary time. It also makes the Administration's "mortgage rescue" plans extremely difficult to implement.

IOW, the "assets" on the books of the banks (and Fannie/Freddie/FHA) are going to continue deteriorating, as will the prices of homes and rental rates.

That's one reason that the Obamafolk should be concentrating on

HT: ZeroHedge

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