This was pretty fluffy. Basically what they are saying is that if there are no negative consequences from the housing downturn we have hit bottom.
And they add this caveat;
“But they add that there’s a major wild card: the question of whether a wave of foreclosures might drag down local home prices and exacerbate the current economic slowdown.
“We’ve only seen the very tip of the iceberg” in foreclosures, warned Ryan Ratcliff, a UCLA economist who evaluated the county’s housing market.”
With that said I always like to show the Credit Suisse ARM reset schedule.
We are on bar 4, look at the bars moving forward.
Basically what this article is saying is that if these ARM resets don’t materialize we should be O.K. There is nothing like an exercise in “wishful thinking”. Way to go Union Tribune.
