Empire in the California Sun – Home prices in California rose 109 percent from 2001 to 2006 and have fallen 37 percent since then reaching post bubble lows. California following Tokyo housing correction trend. 50 year trend between fixed mortgage rates and new home sales broken.


Reversal of real estate fortune – How option ARMs went from low grade toxic mortgages to boon for home debtors and banks. Financial generosity of moral hazard.


Housing Apocalypse Tomorrow – 675,000 homes in foreclosure have made no payment in over two years. The never ending pipeline of troubled real estate.


FHA insured loans now cross a giant tipping point exceeding $1 trillion in book value at risk. The low down payment option with rising defaults that will require taxpayer bailouts of billions of dollars.


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