The Housing Bubble

It's been interesting watching this story unfold. So interesting that I worked up a little video on the topic (i hope it's ok to plug it here?)

Cute vid...maybe a bit to cute....

Lets see there over a quarter million homes lost to foreclosure in the US and they expect that number to be about half a million by June...

so if I assume the 2.6 person average per house-hold that would mean what 1,300,000 new people now homeless in the US...

Makes you wonder how long before we see tent cities popping up just like we saw back during the great depression...

reply to post by DaddyBare


I agree that it is a sad situation and am not trying to make light of it, but I do find it amusing that everyone is trying to blame someone else. I definitely don't enjoy watching people lose their homes and be put out on the street, but the reality is that most of them bought houses that they couldn't really afford. The only way that they could get in was with adustable rate or interest only loans and they speculated that home prices would continue their rapid appreciation and that they'd be able to refi into a fixed rate they could afford. They gambled and lost. Home prices were simply not tied to any economic reality and now, as they have done in the past, they are corrrecting themselves.

Oh don't get me wrong
I don't really care who's to blame and your right that it was greed driven...
But not by everyone... a lot of these people saw it as the only way they would ever get into their very own home....

No my point is... will this become a self feeding problem?
foreclosed houses dragging down the rest of the market?
Millions more dispossessed families forced to the streets?
What happens when these families who cant house themselves start having problems feeding themselves?
At what point does the shear numbers overwhelm the system and the whole things breaks down into chaos?

Is this the beginning of the end???