Those Alt-A's and Option-ARM loans continue to recast and put more and more properties into foreclosure, and will continue for another couple of years. Then, people see others living free of payments in a foreclosure for a couple of years because the banks cannot keep up. So, these others ask themselves why should they keep up with the payments on something that will take decades to come back to the value they paid, and then do the same. That is, see a financial advisor who tells them to do a short sale to basically default on their loan.

Jobs with enough average salary to afford the average home price is critical, and it is just not there. McDonalds jobs don't cut it. Unemployment numbers hide the actual underemployment numbers - where the jobs are part-time or low pay and definitely not enough to afford a home. Underemployment is something like 25% in much of the US.

There seems to be a distinction among owners of it being a house or a home. To many, a home is not an investment, but a place to hang your hat and live in with the expense overhead being just a part of living. Then there are the flippers/investors who tend to think of them as houses or a commodity with profit potential. Many heard or saw about this easy money making "opportunity" and became junior flippers themselves. Some won, and now many are losing. Looks very similar to the Stock Market - where Bulls make money, Bears make money, and Pigs get slaughtered.

May not all matter as this Greek thing could bring everything down. EU will bandage this for now, but Greece will not provide collateral or pay the loan interest. Seems they want it all now, and do not want to pay for it. This may go on for another six or nine months, if that, before it comes back into the news. It will not end well.

A lot of this economic turmoil in the world seems to have come about from the "me" generation wanting it all now, instead of saving up before getting and enjoying the nicer things in life. Unfortunately, recent governments have tended to think the same way, and the "me" generation is now running much of the show in many governments. The Markets also have the "me" generation running much of it and advising on those derivatives, etc. Hmmmm . . .

Man, this all sounds dangerous and out-of-control. Back to hunkering down in my Hen House.