US real estate debt is nowhere near fixed

“the value of the housing stock is only down 30%, equity is down 55% and total debt is only down 3%”

“the primary driver of loan default is not negative equity rather too high of debt-to-income levels, about which far less that can be done to permanently solve the problem.”

via 11/15/11 Mark Hanson – Bank, MBS & MI Co Disappointment / US Housing Debt to Equity Ratio Highest on Record | Mark Hanson Advisers.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s