The CRASH is just beginning
About 1 in 10 Californians with a home loan is now in default, and there's growing evidence that the mortgage meltdown is spreading to commercial real estate.
The home mortgage delinquency rate -- the percentage of borrowers who have missed several payments and are in the first stage of foreclosure -- climbed in June to 9.5% in California and 9.9% in Los Angeles County, according to First American CoreLogic.
We are reaching Zombulation saturation....where so many are Zombulated, the remaining simply can't hold the system together without collapsing.
The staggering number of home mortgage defaults probably will lead to large numbers of foreclosures through at least this year, housing experts say.
Yes the numbers are staggering. And yes it will likely lead to lots of addional foreclosures which will put further downward pricing pressure on homes leading to even more foreclosures.
Imagine what a neighborhood is like when one in ten homes are in distress. Now imagine an entire city.....entire state....and soon an entire nation.
As millions more are likely to lose their jobs or suffer massive wage cuts as we proceed into Fall, the defaults will likely spiral out of control.
At the end of the day, much of our nations wealth is simply debt intruments owned by our financial institutions and pension funds......these assets skyrocketed over recent years simply because the banking system overdosed America with too much debt which is now mathematically impossible to repay.
We are now entering the crash phase of concentric contraction...if my estimates are correct, GDP will contract by at least 50%.....yes, AT LEAST 50%.