60 minutes story on the 99 weeks of Unemployment

60 minutes did a story on people who are running out of the 99 weeks of Unemployment checks. They speak about people who have spent hardship withdrawls from their 401k's and now depend on charities for free food.

They have stories of people who earned $70,000 to $200,000 who were shop-a-holics and now after having applied to hundreds of jobs are forced to scrounge around for recyclables and depend on family and friends for financial help.

Alt A and Option ARM resets to trigger next wave of foreclosures

Last night 60 Minutes had a very interesting story about how a second wave of defaults will hit the housing market. The first wave of course, has been the sub-prime loans that have gone bad. The second wave will consist of Alt-A loans and Option-ARM loans.

This potential wave of future resets in Alt-A and Option ARMs, according to Credit Suisse really begins in 2009, ramps up in 2010, and ramps up again in 2011.

These resets, coupled with increasing unemployment rates, in my opinion will continue to hold-down real estate values for the next several years.

I have more mortgage statistics at http://mortgagestats.blogspot.com


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