In today’s green shoots we’ll direct you over to the Market Ticker, where Karl Denninger discusses Corruption: Government Housing Programs.
The current FHA report is now out for servicing delinquencies and defaults, and as expected it is indeed worse, not better. The administration continues to LIE about claimed “improvements” in the character of home finance.
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22.9% of all FHA loans are either delinquent or in foreclosure.
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Let’s see – 30 days are up, 60 days are up, 90+ days are up, default+foreclosure is up and 60+ including foreclosures are of course up.
Improvement? Where? This is current as of August now and the internals continue to deteriorate.
For a closer look at the specific deflault rates, we urge readers to visit the Market Ticker and read Karl Denninger’s full analysis. No matter what you hear in the mainstream media, or from Wall Street, or from the White House, the numbers do not lie. We’ll see how the numbers get spun on this one, though we would not be surprised if most people watching cable and network news never hear about it.
The 1 in 4 number may be alarming to some, but in reality, all of these loans are backstopped by the Federal Government, so if the SHTF, we can feel confident knowing that Uncle Sam the taxpayers will take care of the bill for those predatory loans. Responsible tax payers understand that sometimes individuals get greedy, bite off more than they can chew, and then need a bailout so they don’t lose their homes. We are true believers in taking from those with the ability to pay and giving to those without that ability. Hey, this is America, and that’s what we’re all about.
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The media is deafly silent on this one — at least online it is. Nothing about this report is listed as a headline at Yahoo, Bloomberg or MSN Money.
Though, there is a fantastic story on MSN Money called “The Case for Dow 14,000 and beyond“.
On a related note, word on the street is (i.e., from a friend who works for them) that many of Wells Fargo’s bad loans (various types) are now starting to surface.
I was told we’re talking about HUNDREDS of BILLIONS of dollars worth…
That is what I was told anyway.
The next shoe has to drop pretty soon here…my guess is we’ve got another banking crisis on the horizon.
but wait — Warren Buffet said WF is good to go…. perhaps someone didn’t show Warren the underlying toxic assets?
I don’t think it is just WF.. BofA, Citi… all of ’em are hiding losses… Why else would mark-to-market rules need to be relaxed the way they were before Q1 earnings hit in April? There can be only ONE reason — that if the banks had to mark-to-market, this BS rally would never have happened and the club players wouldn’t have been able to rip of billions from unsuspecting investors who believe what the mainstream is telling them.
This will end badly. I agree, I banking crisis is en route, and not just here, but in Europe as well… Some of the banks in Europe are probably worse off then US banks after lending billions to emerging east block countries that have no choice but to default. The S is going to HTF soon… hard to give an exact date, but by mid to late 2010 it should be pretty clear in the equities markets.
Perhaps then people will wake up — you know, when 80% of their 401ks have been wiped out.
Oh yeah…they’ll all in trouble. I just don’t have any contacts at other banks.
It’s just a matter of when it surfaces, and what our govt does about it.
I’m pretty damn convinced things are going to get ugly again.
I just wish I new the answer to the inflation/deflation question. Well, in the long run, sure – inflation it is…but what about the next couple of years? I’m still flipping the coin I guess, but my money is on short term deflation.