Daily Reckoning about The Housing Market
Dear Daily Reckoning Reader,
If you think that the current downswing in the housing market only affects those poor homeowners who are being strangled by their resetting ARMs... Think again. In just four short years, your house is likely to be worth about HALF of what it is now.
But, as you’ll discover in the report below, there are three easy ways to hedge against this subprime meltdown. And we’re prepared to tell you what they are...absolutely free.
Managing Editor, The Daily Reckoning
Most catastrophes have a ripple effect.
Bomb finally fell out of the sky?
- Business Week
"For cash-strapped homeowners, it was a pitch they couldn't refuse: Refinance your mortgage at a bargain rate and cut your payments in half... but those who took the bait are in for a nasty surprise: payments are about to skyrocket."
- Business Week
Here's the thing...
In the 1989 crisis, fewer people owned real estate. In the 2000 Tech Bust, not everybody owned tech stocks. But in both cases, the impact was far reaching.
What does that mean now, when most Americans own property AND a mortgage, alongside their stock portfolios? What does it mean when so many of the new jobs in America -- as much as 43%, remember -- came from the housing industry?
In the tidal wave of falling property prices ahead, it means tighter spending. Lost jobs. Troubles for retail, restaurants, car dealers, advertising companies, jewelers, remodeling contractors, furniture manufacturers, banks, electronic retailers, and more.
Helge: What are the ripple effects for Europe and Finland? We're most probably going to get a feel for this flue that started from US but is spreading through-out the global banking community.