FHFA has just reported that non-prime loan delinquencies rose 23% while prime loan delinquencies rose 70%. What's different with these figures at this particular moment in time is that FHFA is insinuating that "unemployment" is the chief culprit for these figures. Thay go on to state the 5 major reason presently for default are:
1) Curtailment of income: 34%
2) Excessive obligations: 19.8%
3) Unemployment: 8.1%
4) Illness: 6.5%
5) Marital Difficulties: 3.5%
Job losses and excessive debt have now surpassed the traditional causes which used to be illness and marital difficulties. It would appear that the excessive greed of big business is actually robbing itself of a sustaining economy this time around. Whether The Employee Free Choice Act can come to the rescue here, remains to be seen. And just when you thought these figures couldn't get any better for the shorts in the market, David Kellermann, the CFO of Freddie Mac was found dead last night from an apparent suicide! "Bear trap, yikes"!