Bill Dunkleberger, at the Wynnewood Institute, sent out an absolutely fascinating post:
“One third of all foreclosures in the housing market are in Florida and California. 96 percent of all mortgages are being paid on time. 30% of American home owners have no mortgage. Delinquency rates were higher in the 1980s than they are today. Only 2 percent of all mortgages are in foreclosure, and a bunch of these were speculative investments, not homes that were ordered by real home owners. Indeed, most of the mortgage problems are confined to Southern California, Las Vegas and Florida where speculative building was rampant. Problems in the mid-West are due more to the weak economy there, not overbuilding.”
Mr. Dunkleberger seems to know what he’s talking about. Too bad that our government is in such a hurry to help. There are people who are anxiously awaiting any opportunity to get a government job in a new department.
The upcoming “Department of Mortgage Security” will materialize as fast as the airline security popped up after 9/11. At that time, there were complete plans in place, just waiting for an excuse to add tens of thousands of hundred thousand dollar jobs to supplicants.
The Department of Mortgage Security will make as much a mess of home financing as the new security procedures have made of air travel.
