“We are looking at the worst set of macroeconomic conditions since the Great Depression. I don’t know where the bottom is… The most dangerous part in my judgment is what is going on in the housing world, where we’re now running foreclosures at the rate of two million a year, where nine million homes, according to the government, just slightly under nine million homes, have either no equity in them or negative equity. That will go up to 15 million if housing prices continue to go down this year as they’ve done last year.”
Mort Zuckerman, co-founder of Boston Properties, quoted by Bloomberg, March 12, 2008
Definitely a lots of "jingle mails" was sent to the bankers lately. By the way "jingle mail" it's the terms used in U.S for home owners who can't service their loan, eventually sending the house keys in an envelope to the banker for "safekeeping" means owner's surrendering their house to the bank concern.
How it will affects the financial situation in America it's left to be seen, Lehman got no buyer, Washington Mutual(WAMU) downgraded to junk level by Moody today. Freddie and Fannie just nationalised costing America taxpayer billions of dollar, who is next on the line you might asked?
" The tale of how the two GSE’s(Freddie/Fannie ) got to this point is a long and sorry one. It is a story of quite staggering ineptitude on the part of company management, the financial regulators, the Federal Reserve, the US Treasury, and the US Congress. I believe it is a seminal moment in the ongoing demise of the US Dollar as the world’s reserve currency. "Rob Lee on GSE Bailout.
The demise of the dollars as world reserve currency? For those who thinking of buying dollars better think twice as the former Kuwait Oil Ministers once said the US dollars it's an unguaranteed currency.
Well I've a better idea discard USD ................buy gold safe haven!
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