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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: Giordano Bruno who wrote (33216)	12/9/2010 1:19:53 PM
From: John	1 Recommendation Read Replies (1) \| Respond to of 71456

The outrageously-bullish news continues to flow...just in time for Christmas! Home Values to Drop by $1.7 Trillion This Year, Zillow Says bloomberg.com excerpt: U.S. home values are poised to drop by more than $1.7 trillion this year amid rising foreclosures and the expiration of homebuyer tax credits, said Zillow Inc., a closely held provider of home price data. This year’s estimated decline, more than the $1.05 trillion drop in 2009, brings the loss since the June 2006 home-price peak to $9 trillion, the Seattle-based company said today in a statement. The drop in home values pushed more buyers underwater, meaning they owe more on their mortgages than their homes are worth, Zillow said. The percentage of homeowners with mortgages with so-called negative equity reached 23.2 percent in the third quarter, up from 21.8 percent at the end of 2009. [...] As many as 8 million homes are in default or foreclosure and may be offered for sale, known as shadow inventory, according to Morgan Stanley. The looming supply will combine with tight credit and questions about housing-finance regulation to reduce prices 6 percent to 11 percent from current levels, the analysts said. --- Zillow's CEO would be well-advised to word his company's home value assessments more carefully, else he will be facing a rash of rape allegations, frozen bank accounts, and a stiff prison sentence. -ng-