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Originally Posted by graciegirl
This mornings front page headline in THE CINCINNATI INQUIRER was "MORTGAGE CRISIS HITS NEW DEPTH. One homeowner in 11 behind in payments or in foreclosure" (Saturday September 6, '08)
Not good. Not good at all.
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Yes, graciegirl, not good. As more homes go into foreclosure that just adds to the inventory and we all know that when a merchant has too much inventory on his/her shelf that merchant must reduce prices to move the inventory out the door. The crisis is now moving into PRIME mortgage holders. There will be a bottom eventually but, when people sell their homes elsewhere for less than they thought they would receive, they'll be looking to buy in TV for less than they thought they would have paid originally. The reductions in a place like TV may be less on a percentage basis than many other places but the reduced prices will be necessary.
Check out Bloomberg's story:
http://www.bloomberg.com/apps/news?p...UpI&refer=home