|
Post by unlawflcombatnt on Sept 1, 2007 4:06:14 GMT -6
from the New York Times Speculators Seen as Causing Many DefaultsBy THE ASSOCIATED PRESS " Investors who tried to turn a profit on the housing market are having an outsize influence on surging mortgage defaults in former boom states like California and Florida, a banking industry group said Thursday.
The trade group, the Mortgage Bankers Association, released an analysis of mortgage defaults in Florida, Nevada, Arizona and California, states that experienced strong price appreciation during this decade’s housing boom....
“Defaults are on the rise in most parts of the country, but it should be recognized that it is not always the case of a homeowner losing his or her home but is often the case of an investor gambling on a continued increase in home values and losing that gamble,” said Douglas G. Duncan, the trade group’s chief economist.
Nevada had the highest share of investor-owned defaults. Among defaults on loans given to borrowers with strong credit, 32 percent were by investors. For defaults on loans given to borrowers with weak credit, 24 percent were by investors....
Arizona had the second-highest percentage of investor defaults, followed by Florida and California...."
|
|
|
Post by jeffolie on Sept 1, 2007 11:43:31 GMT -6
Speculation on assets has always been part of human behavior. Commodities, Real Estate, debt instruments, tulips, currencies and equities have attracted speculators.
Many times I have heard how regular workers are entised to quick their jobs because some speculative enterprise they are involved with is making more money for them than their regular job.
|
|