Tuesday, September 18, 2007

Foreclosures

I'm sure a lot of the (quite arguably justified) doom-and-gloomers will be picking up on this data in the (very) near future:
The number of foreclosure filings reported in the U.S. last month more than doubled versus August, 2006, and jumped 36 per cent from July[.]

Particularly Econbrowser. Regardless.

The one question that I've never managed to receive a satisfactory answer to is what percent of these foreclosures are people being kicked out of their homes, and what percent are real estate speculators who've had the value of their speculations drop in the middle of the flip, and are now finding it to their advantage to let the payments lapse and have the bank take the house in exchange for the debt.

I have yet to see whether such figures exist, and the nature of how much of these foreclosures fall into each category has real implication (in my mind) for monetary policy.

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