I remarked recently that I felt our government was overly optimistic in its economic forecasts and didn't seem to be considering the possibility that something might yet cause the recovery we're all supposed to be experiencing to stall. Perhaps someone should ask Jim Flaherty what he thinks about this from the Washington Post.
The housing market is facing swelling ranks of homeowners who are seriously delinquent but have yet to lose their homes, and this is threatening a new wave of foreclosures that could hit just as the real estate market has begun to stabilize.
About 5 million to 7 million properties are potentially eligible for foreclosure but have not yet been repossessed and put up for sale. Some economists project it could take nearly three years before all these homes have been put on the market and purchased by new owners. And the number of pending foreclosures could grow much bigger over the coming year as more distressed borrowers become delinquent and then, if they can't obtain mortgage relief, wade through the foreclosure process, which often takes more than a year to complete.
Is it just me, or has Flaherty been talking as if he's either completely unaware of this or thinks that our own economy will be completely immune to a problem like this involving our largest trading partner?
H/t Atrios.




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