Housing's Biggest Bust Now Looms

By Dennis Whitney

Since the meltdown of '08, there has been an endless debate amongst pundits and so-called economists as to where we are in the state of housing. That millions are losing their homes, but most are being swept up by those ready to take advantage of such dramatic price drops in the market. But these nonsensical stats hardly correlate with those who are serious about illuminating the wicked reality of it all. Rather than going to such media propaganda machines as MSNBC (God forbid) or such trashy, hard left mouthpieces as the New York Times, I suggest you visit the likes of Gerald Celente, Peter Schiff,  www.dailyreckoning.com, or www.321gold.com, which also gives tremendously valuable insight into the metals market.

What will these particular sources of info tell you? They will tell you just how it is. That the facts are there, and not at all being reported on. That a MASSIVE number of homes, already foreclosed upon, have not even hit the listings yet, for fear of imploding an already nasty situation. If we really knew just how many homes were now on the market after the effects of so many lost jobs, lost homes, and lost hope, housing prices would plummet in all other surrounding areas, creating a positive feedback loop that would go on indefinitely! And, there is also the very fact that there simply is not the manpower to keep up with what we are already stuck with, in terms of bank owned properties, to supplement the current state of malfeasance.

But it's the SPIN that always gets me. Media outlets tout that buyers are capitalizing on the misfortune of others, but doing a 'public service' of sorts, by removing excess inventories from the balance sheets of banks, and into the welcome arms of happy new home owners. I think I'll need one of those airplane barf bags. Stat. Do any of us believe there has been a buyer for at least MOST of the homes that have been lost? This is a wake up moment. Rise and shine!

Here comes the truth, that is widely known, but ignored. And a subject NEVER even broached by our president! It is the fact that even with all of the inventory still unsold, and job losses coming fast and furious (not 'saved' by the way), we have an illuminating chart like the one below. What it will show (and you can can mark your calendars by it), is the HUGE coming reset of ARMS (or Adjustable Rate Mortgages) in both 20120 and 2011. The basic gist being, those who could not afford to buy a home they past few years, but placed little or no money down to GET a home anyway, are about to pay the piper. In a very big way. 

Study this chart. It tells us everything we need to know, and everything we need to dismiss when such 'economists' and 'leaders' speak of this recovery now under way. You simply can't say that with a straight face, with a chart like this in front of you. And your president knows about this chart. And he knows about these coming dates. Make no mistake. What will you conclude from that, when you next hear him speak?

The damage will surely reach across all socio-economic boundaries regardless of what we are aout to be told. Good credit borrowers, bad credit, and everyone in between. When this hits, there will e a tsunami wave of lost homes! In the chart, you are essentially seeing the DOUBLING of mortgages on speeding our way, and the brakes have just gone out! Do you know many people that can absorb such an increase in expense to their budgets? I don't. And these home will be lost. Yet we're throwing a party for the 'recovery' now under way, and an end to the recession! Wow! That takes some guts! So take a look, then read a very good article if you like, on the state of affairs, spoken much more eloquently and technically than I could. The link will be at the bottom of the page.Buckle up, this landing's going to be a hard one!

And a quote from the website www.321gold.com

written by Jim Willie

"The hidden banker home inventory festers like a cancer. It is a huge overhang to supply that will prevent a home price rebound altogether for another two years. Talk is prevalent of stability finally attained in the housing market. They look too much at home price patterns, and ignore inventory pileup. The banks are hiding their inventory, shuffling homes on their balance sheets, refusing to take heavy losses. Word comes from a banker contact in Florida, that 85% of foreclosed homes in the Sunshine State have yet to hit the property market for sale. The fellow mentioned the certain impact of upwardly adjusting mortgage rates, finally coming from the Prime Option Adjustable Rate Mortgages."

Read the full article regarding this 

housing mess on www.DailyReckoning.com

IMPORTANT: If you're wondering why this should affect you, even if you don't find yourself in this mortgage bind, you must remember, what affects your neighbor, will affect you. Their desperation can create a security issue for you, especially you if have what they'll need to feed and support their families. This is why you must always be discreet about your stockpile of emergency supplies. These foresclosures will be a very real, and contributing factor to the decay our society is now facing. Knowing these coming dates will help you to plan for what you feel is best for you, and for your family. Be aware, be prepared, and keep yourself safe.