Day of Reckoning; America’s Economic Meltdown

Interesting article, the link is available, however here are some interesting points:

"The magnitude of the housing bubble is shocking and unprecedented. According to the Federal Reserves own figures, “The total amount of residential housing wealth in the US just about doubled between 1999 and 2006 up from $10.4 trillion to $20.4 trillion.”(Times Online) This tells us that the Fed had a clear idea of the size of the equity balloon their low interest policies were creating, but decided not to take corrective action. It also tells us that there will be no “soft landing”. When the market begins to fall, no one knows when it will hit bottom. $10 trillion is more than a “little froth”, as Greenspan opined; it is an earth-shaking, economy-busting catastrophe that will put millions at risk of foreclosure, bankruptcy and ruin. "

“The housing market has turned; it’s going to be down this year and even more sharply next year,” said Dan Meckstroth, chief economist an Arlington, Virginia-based trade group. (Reuters) As the housing bubble deflates, economic growth will slump, and the anticipated recession will steadily deepen. "