1 in 200 households in Nevada foreclosed last month
Harsh news now coming from the US, where foreclosures are running at double the rate of last year, and are now almost happening at a rate of 200,000 per month.
From what I'm observing in the US, if the reaction to this crisis turns out to be further rate cuts (translation, 'let's inflate our way out of this problem'), then I think the trade of year in 2008 will be to short the US Dollar. Considering the currency is already so weak, this could be far scarier than a lapse of liquidity in the mortgage bond markets.Given the choice between seeing some banks and builders go bankrupt during a few years of painful unwinding, and triggering hyperinflation in the world's largest economy, I would much prefer the former.Link: U.S. Foreclosures Rise Sharply in July: Financial News - Yahoo! Finance
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