Remember Japan’s “zombie banks”? These were the financial institutions that haunted that country’s economic recovery after the 1990 crash. They staggered on with huge losses they could never repay — the walking dead.
Here in America we have “zombie homeowners.” Millions of them. According to Zillow, a record 16.3 million families are upside-down on their home loans. Sixteen million! And many are a long way upside-down. Their homes may never be worth as much as their mortgage. But they are hemorrhaging cash to pay the nut every month.
It’s a stupid Commentary wherein he drools over the bargains to be had and future gains to be made — but I wanted those two paras to quote.
After all the bullshit from the government, I’m glad to see the ongoing parade of Doom can’t be hidden in the end.
Housing prices still have a long way to fall. A. Very. Long Way.