Thursday, October 14, 2010

By The Numbers

Obviously cause and effect go both ways, but anyone who can't figure out why the economy isn't rebounding faster should just meditate on this fact for a little while.

About 11.5 percent of borrowers are in default today, up from 5.7 percent from two years earlier.

As I said many months ago:

Happy to be wrong, but the failure to deal with the underlying problems in housing and finance under the theory that prices will magically rebound and everything will then be ok is going to doom the economy....