As a runner that passes a lot of homes, I can tell you they are not selling. Meaning a repo is not generating any cash, so I believe the banks are hoping something form the government. Their hope will be crushed the next time a large bank needs cash like Countrywide and CitiGroup did. I believe that another loan from a foreign bank at a rate above 10% will make them realize that rates are going above 10% in the next 18 months. If “home owners” can’t make the payment at 7% interest how is 11%-12% going to work. The Fed needs to protect the dollar.
