There seem to be more and more rumblings everywhere. Rumblings about Iran’s nuclear weapons development are getting louder and louder. (Even the IAEA has said something for a change.) The EU is shaking apart, and no one really knows where that will end. And, I just saw today that 50% of all homes are underwater in their morgages – with ten million homes (about 20%) facing foreclosure.
All of that together, along with who-knows-what that we’ve missed, is truly catastrophic.
Oh, and did I mention the recent sun flare activity? Via reports from the NOAA?
No? Shame on me.
I’m sorry, but all of this is quite unsettling. And yes, I do believe that it all works out in the end for ‘the good people’. But, that’s only true for those ‘good people’ who are paying attention and doing something – which is one of my own personal definitions for ‘good people’.
And, when ‘good people’ sit on their hands and do nothing, people suffer and die. And, if even a tiny fraction of what we’re all afraid of happens, they will be burying the bodies in mass graves.
Here is a recent bit about earthquakes:
So why don’t people care about these huge earthquakes?
Well, it is because they are just so incredibly common these days.
In 2001, there were 1361 earthquakes of magnitude-5.0 or greater around the globe. This year, we are on pace to have nearly twice as many.
In 2011, we are on pace to have more than 2600 earthquakes of magnitude-5.0 or greater.
Read the full article here.
It’s something of a rehash of what I said here.
And, how about those mortgages:
Ten Million Homes (19%) Face Foreclosure; 50% of Mortgages Underwater
Mac Slavo, November 9th, 2011, SHTFplan.com
Fifty to Seventy-Five Percent. That’s how much home prices will slide before this is all over.
Here’s the latest evidence that what we’re looking at is not just some short-term real estate cycle:
Of the 55-million families with mortgages, 10.4-million of them “are sliding toward failure and foreclosure”—a tragedy that will depress the U.S. housing market for years to come, a result of too many houses for sale and too few buyers.
That’s the blunt conclusion of distinguished economics journalist William Greider, to be published in an article in the November 14th issue of The Nation magazine.
America’s “Economic recovery will have to wait until that surplus (excess houses) is gone, because the housing sector has always led the way out of recession,” Greider says. “The more housing supply exceeds demand, the more prices fall. The more prices fall, the more families get sucked into the deep muddy. The vicious cycle is known in the industry as the death spiral. So far, there’s no end in sight.”
The fact is, easy money from the Fed and no-income financing by banks took home prices to obscene levels during the real estate boom. The home values we saw at the peak in 2006-early 2007 were totally manufactured and without merit. That’s why over half of American households are now underwater in their mortgages:
According to a note by real estate expert Mark Hanson, referenced by CNBC’s Diana Olick, the truth of the matter is that, if one were to truly factor all implicit equity reductions, the number of underwater houses is…half. Expect this to proceed like a shockwave in the PrimeX space once the market comprehends what this means…
Source: Zero Hedge
The banks will never recover this money.
Read the rest of the article here.
What will happen when we find out just how much Greek and Italian debt we these banks have?
What about all the other stuff that we don’t see?
(THAT’s what should really worry you.)
Which brings us to what’s happening in Greece and now Italy.
European debt crisis spiralling out of control
Reports that Germany and France have begun talks to break up the eurozone amid fears that Italy will be too big to rescue
Fears that Europe’s sovereign debt crisis was spiralling out of control have intensified as political chaos in Athens and Rome, and looming recession, created panic on world markets.
Reports emerging from Brussels said that Germany and France had begun preliminary talks on a break-up of the eurozone, amid fears that Italy would be too big to rescue.
Does ANYONE know where we go from here?