A New Bubble Of the Fed's Creation

A New Bubble Of the Fed's Creation
September 23, 2009, Washington Post

For the past two years, the central challenge of U.S. economic policy has been to find a way to stabilize the financial system and the economy without reinflating the bubble or going back to the days of consuming more than we produce. In the end, that may prove harder than it seems. Yes, the financial crisis has passed and the economy is growing again, but there's a good chance that growth will be temporary -- the result of one-time events like "Cash for Clunkers," the tax credit for first-time home buyers and the restocking of inventories allowed to dwindle during last year's crisis. But with businesses still reducing payrolls, bank lending still contracting, and anxious consumers determined to save more and spend less, a sustained recovery in 2010 isn't looking very likely.

Equifax: National Mortgage Delinquencies Set Record
September 22, 2009, Banker & Tradesman

High unemployment keeps pushing up the nationwide rate of mortgage delinquencies, which could in turn drive personal bankruptcies and home foreclosures, monthly data from the Equifax Inc. credit bureau showed on Monday. Among homeowners with mortgages, a record 7.58 percent were at least 30 days late on payments in August, up from 7.32 percent in July, according to data obtained by Reuters.

Foreclosure Data for Your State, City and Neighborhood
September 22, 2009, Zillow Blog

Some media outlets are starting to report that foreclosure rates in some states are starting to slow, the first sign of good news in the foreclosure space for a long time. Stemming the rate of foreclosures is a prerequisite for a turnaround in the housing market because it reduces the amount of new distressed inventory in the pipeline.