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The Vicious Cycle Phase

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edited November 2008 in Housing Bubble
We've now entered that part of the housing crash were a cyclone of negative events begin feeding on themselveslike a cannibal dance party.
In June, 45.5% of all delinquencies reported by Freddie Mac (FRE, Fortune 500) were due to unemployment or the loss of income, according to the company. That's a rise from a level of 36.3% in 2006.

Not a huge uptick yet, but the cycle trifecta of -
  • Housing values drop
  • Financial institutions lose money
  • Mainstreet loses jobs
- is developing into a pattern.
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