One word: Deflation-(employment and wage)

It’s happening

No area is immune

It’s an observable fact

You can’t get around this

It negates any housing bottom

Post-deflation will most likely be worse….

And this will blow up in our faces too…

from WSJ:

Last year banks issued $180 billion of new mortgages insured by the FHA, which means they carry a 100% taxpayer guarantee. Many of these have the same characteristics as subprime loans: low downpayment requirements, high-risk borrowers, and in many cases shady mortgage originators. FHA now insures nearly one of every three new mortgages, up from 2% in 2006.