Oh yeah, and for the clown poster trying to claim that we are starting to sweat…not hardly. In fact, I grow further emboldened as each week passes because I know what the Macro Picture is and it ain’t good.
1.) 1,000 homes auctioned per day in California in April.
2.) Most of those go back to the banks which have yet to write them down.
3.) Negative Non-Borrowed Reserves balance on Fed Reserve Balance Sheet. Banks don’t have your money anymore…that’s not good and the bond market will eventually have their say…then watch the interest rates climb.
4.) Second Wave of Resets/Recasts from Alt-A and Pay Option Arms for higher credit score borrowers..you know…the high end homes like CV and 4S.
I can keep on going, but that is plenty enough for me to not feel insecure about where the housing market in SoCal is headed over the next several years.
