For those who think that the worst is over, the bad news is that it hasn’t started yet. In real life we get after shocks in the housing market we get before shocks. Everything that has happened up to this has been a mere warning.
Currently there are 7 million homes in default, if only half of those go into foreclosure that is 3.5 million homes in foreclosure in this once great country. Remember that our total population is 300 million. So if every house had only one occupant that is 1% of our population in foreclosure. But as most foreclosures affect families of 3 or 4 this means that 3 to 4 percent of our population will be foreclosed and evicted in 2010, if this is not an economic tsunami than I don’t know what is.
The economy regardless of what Wall Street cares to believe is the people, living, eating and buying. What effect will 4% of the population losing the roof over their head have on the economy not only in 2010 but in years to come? Also remember that the 4% have friends and relatives who will be affected bringing the total percentage affected by the 2010 Foreclosure Tsunami closer to 20% of the population of America.
Mr. Obama needs to do for the homeowner and tenant facing foreclosure what he did for the Banks. In the long run we might find out that the mantra of this economic crisis “Too Big To Fail” should have been reserved for the American people and not wasted as rhetoric on financial predators.
