Could a recession be looming? If so, or potentially so, can Democrats handle this and Iraq as well?
The story reports two additional concerns beyond the headlines stat.
First, the foreclosure rate jumped 19 percent from April.
Second, we aren’t about to turn the corner.
A jump in foreclosures at a time of year that traditionally is the busiest for home sales means the slide in prices probably isn't over, said James Saccacio, chief executive officer of RealtyTrac. Typically, more than half of all home sales occur in the April to June period, according to Freddie Mac, the No. 2 mortgage buyer.
“Such strong activity in the midst of the typical spring buying season could foreshadow even higher foreclosure levels later in the year,” Saccacio said in the report. That will add “to the downward pressure on home prices in many areas.”
I’ve been blogging about this for months; I totally agree. Unfortunately, Wall Street and the Federal Reserve refuse to face the music.
Just go to my blog and click either the “subprime mortgages” and “housing bubble” labels.
I’ll give you 50-50 odds the country faces at least a “mini-recession” 12 months from now. If Congressional Democrats can’t get their act together better on Iraq and aren’t prepared for something like this, the 2008 election season will be far short of a cakewalk. Remember what Big Bill and Cajun Carville said back in 1992 about the economy?
Cross-posted at Socratic Gadfly.
