Huge Market Crash Coming

It turns out that the abyss is deeper than most people think, because there is a second mortgage shock heading for the economy. Across Wall Street you begin to hear alarms that a new wave of mortgages with strange names are all about to become familiar. One of the best guides to the danger that comes is Whitney Tilson. He is an investment fund manager, who has made such a name for himself recently that this investors that are managing billions gather to hear him. He says that we now have the greatest asset bubble in history, and that bubble is bursting. The single piece of that bubble is US mortgage market. They need now to inspect that bubble.

In 2007, Tilson teamed up with a company specialized in mortgages. Whitney Tilson has done some detective work, so he found that the sub-primes were defaulting. There was data that no one saw before, it was terrifying information. Then, he realised that the things will become much worse. Another two other kinds of mortgages that become popular. So, a mortgage of 800$ / month could easily jump to 1500$ per month. Now, the defaults are really high. They are leading to the fall of home prices. When you look back in 2007, you can see the current fall phase, and see that it is very unpredictable what is going to happen.

The potential damage is very big, at a large scale. We see then someone, who was running a real estate, and now his business is down. His business is gone. Now he frees homes because the banks are taking people's homes. Whitney Tilson moves the possessions out too. Once the homes are empty, he tries to find people to buy them. There are homes that cost with 1,500,000$ more now than last year. In the next four years, 8 million americans are expected to lose their homes. The same crisis that occured in the mortgage market will occure in the real estate market.

Whitney Tilson Quotes from this video:

  • The next wave is coming soon
  • 2010 will be more than miserable
  • Housing is the core of what is going to happen. It is the central point of it
Submitted by YouTube Trader on Sun, 04/04/2010 - 19:11

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