One Trillion In Mortgage Losses & Foreclosures To Go

Dr. Housing Bubble projects one trillion in mortgage losses and foreclosures to come, $391 billion written off so far. Read the whole thing. I’ve checked the Doctor’s numbers myself, several times, and they match my own projections. Fiscal 2009 should be the worst year yet. Toxic Pay Option ARMS will reset. Expect $500 billion loss from these alone.

The Doctor fails to address the effect of a 20% drop in the value of the dollar. Expect the resulting inflation/stagflation for 2008 to be in the 8-9%. This fall mortgage interest rates of 7-10% will result with devastating effect on ARM mortgages in general, and even more foreclosures.

Buy farms.

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