gabe borenstein

Prime Mortgages Are Also Going Sour

So Americans are defaulting on the Prime Mortgages as well?
What does it mean for recovery? not really much.
Since unemployment is a lagging indicator,it is therefore quite clear that the initial stages of the economic recovery will have a marginal impact on the employment .
Until employment picture improves(shortly) ,mortgage issues will exist.
As the expansion gathers momentum the unemployment will decline geometrically .
We will see a noticeable improvement in the figures by the mid of the fourth qtr.
In the meantime ,carefully injected measured liquidity will continue to enhance economic momentum.
The fourth qtr growth will come in at 4.5%(GDP).
Inflation is not an issue as thisexpansion willnot be driven by demand pull forces.
Let's sit back and enjoy the stock market rally.
Periodically ,we will have to deal with market paranoia(volatility) driven by the gurus of the past who had failed to predict this rally.
Mortgage delinquencies ? they are about to decline