“I’m melting,” said the Wicked Witch after being doused with water in the land of Oz.
Well folks, looks like the economy is melting having been doused with a hefty dose of reality.
A new report today by the Joint Economic Committee of Congress, says the New York Times, is predicting some two MILLION foreclosures just by the end of next year—this “on homes purchased with subprime mortgages.”
The report is apparently far more dire than the prediction by the Bush administration of only half a million or so foreclosures. Surprised? Come now.
So, what does this mean in terms of money lost?
The report says 71 BILLION dollars will go down the drain due to lost real estate wealth caused by foreclosures on subprime loans alone.
And, it gets worse. Listen to this: Says the report, as quoted by the Times, “An additional $32 billion would be lost because foreclosed homes tend to drive down the prices of other houses in the neighborhood.”
Sort of like guilt by association–only, in this case, it is financial loss by association.
The real news is that hardly a day goes by when what we thought we all knew about the full extent of the problem gets tossed aside by new figures or a new private or government report.
Now, in Oz, you’ll recall, the whole damn mess began because that house happened to fall on a witch. If The Wiz was being penned today, the witch would have died of a coronary after her subprime mortgage tanked.