Dr. Housing Bubble 08/17/09

California Housing Bottom Callers and the Foreclosure Clones of 2008: Notice of Default Wave Part Two Gearing up for Q4 of 2009 and 2010.
U-6 Unemployment and Underemployment Rate for California now at 21 Percent.

People are back to their bottom calling bunker positions here in California. Some believe the Alt-A and option ARM wave will be a non-event. I’m not sure if this has to do with the summer sun or the 50 percent stock market rally since March. In the last two months, I have gotten e-mails from folks in prime locations like Pasadena, Menlo Park, Culver City, and other areas and many largely believe that the game is now over. Move along. There is nothing left to see. I am fascinated by this not in my back yard view of economics especially when it comes to housing. They largely see the claim that housing will be in deeper pain for a few more years as some kind of “gloom and doom” call. I have news for them. California flew off a cliff with the $26 billion budget deficit. Gloom is already here for the 11.6 percent who are unemployed (21 percent if we use the U-6 measurement) and in many areas housing prices are off by 50 percent from their peak. I hate to tell them but the crash already happened for 90 percent of the state.

Many of these people are absolutely disconnected from the reality on the ground. Did they not hear about the Great Western Forum being filled up with thousands of people, many turned away seeking healthcare?

“INGLEWOOD - Judging by the images being broadcast worldwide, of rows of people waiting to be treated by doctors and nurses dressed in scrubs and working inside a vast arena, the sights looked a bit like a scene from the classic television show “M.A.S.H.”

http://www.doctorhousingbubble.com/california-housing-bottom-callers-and-the-foreclosure-clones-of-2008-notice-of-default-wave-part-two-gearing-up-for-q4-of-2009-and-2010-u-6-unemployment-and-underemployment-rate-for-california-now/