San Diego, CA
10,416
5,603
7,727
11,548
24,878
35,294
338.8%[/quote]
Actually, given the “cure” rate methodology, you could probably put total shadow inventory close to double that.
What banks are looking it, for survival purposes, is the number of mortgages upside down because of the huge default risk. With 250,000+ mortgages upside down in SD, they can’t have people walk en masse or they go out of business. If prices keep sliding, you could probably add another 50-75K of inventory to SD pretty quick.
So what the Fed must do is to save the banks is:
Keep inventory low
Keep interest rates low
Keep foreigners buying treasuries
Keep running a HUGE deficits
And most importantly, keep confidence high, which entails, keeping people in the dark
Problem, the life blood of our economy, credit, is still contracting. This WILL NOT AND CANNOT STOP for the foreseeable future. This is the driver of the contraction.
