Shadow Inventory Hitting
The shadow REO inventory that was being hidden by the banks is now starting to hit the market.
Real estate prices being as low as they are currently, will undoubtedly begin to fall further once the thousands of houses that we're hidden begin to hit the market.
These banks believed they could hold off on marketing this shadow inventory until the market stabilized for two reasons, one they didn't want a crash, two the less inventory the more per door. I believed it backfired.
Since the option arms are rising, restructured defaults are defaulting again and more and more foreclosures are taking place, compiling them into the already staggering mound of reo's, they have no choice but to start getting them off the books. (hence B of A's 10,000 properties just hitting the market) In doing so values continue to faulter.
The biggest cause of this is the U.S. government (idiots) gave the banks over a trillion dollars of taxpayer money to bail "them" out, which put the banks into a position of "we don't care let the reo's sit there" because they truly don't need the money.
If in fact that money went to the American people, they would have paid their payments, kept their houses, bought furniture, cars, garbage cans, vacations, pots and pans etc etc and got the economy moving, instead, the idiots in the government tax the American people at a staggering 50% and wonder why the middle class is gone and no one is buying anything.
Double dip recession? Of course. Depression? we'll see but it's going to get tough.
