These mortgage holders (not really home-owners) belong to the middle and middle-upper class. Similar to subprime, Adjustable Rate Mortage payments reset at certain milestones to 50%+ higher. It peaks in 2011. As unemployment continues to grow, real estate prices will drop further.
Look at the stats from Credit Suisse
So the next logical question lies in exploiting this information for a profit. SHORT the REITs, into the rallies. Pretty obvious right?
6 months ago
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