Recession 2 Coming Soon?
According to this BusinessWeek article, Krugman Sees 30-40% Chance of U.S. Recession in 2010 (Update1), there is a good chance that rising interest rates (caused largely by the end of the massive $1.25 trillion mortgage securities purchase program and the $175 billion Fannie Mae/Freddie Mac/Ginnie Mae mortgage securities purchasing programs in April 2010) that we could experience another recession in 2010. The article states that Paul Krugman, a Nobel Prize winning economist and economics professor at Princeton University, believes that there is about a 30% to 40% chance of a recession in the 2nd half of 2010 and that the chance of growth slowing down enough such that unemployment increases again is more than 50%. Krugman also said that mortgage rates will go up some and housing sales may decline. The real issue here (not mentioned in the article) is the entire US economy is based on debt, not income, assets and productivity. This debt is what fueled consumer spending. Now that debt is right near the ceiling there is just not much chance that massive government spending and subsidizing of interest rates will have any lasting effect. My opinion is that we will see another recession and this one will be worse than the 1st one since the government will have made things worse with all the borrowing and spending. As a result, housing will decline and there will be more short sales and foreclosures.
If you are a Middle TN homeowner, property owner, condo owner, real estate investor, home builder or real estate developer who cannot pay your mortgage payments (due to losing your job, having your income reduced, illness, health problems, adverse business conditions, slow sales, loss of investment property tenants, vacancy issues, lack of funds to complete the project, feuding business partners, etc.), know that you will not be able to pay your mortgage, have defaulted on your mortgage, are already in foreclosure, or owe more than your home is worth, please contact me to discuss your options including a loan modification and a short sale (a real estate short sale occurs when the sale proceeds are not sufficient to pay off all the mortgages and liens on the property/home). I am a Middle Tennessee distressed real estate, short sale, pre-foreclosure (preforeclosure) and foreclosure REALTOR and Expert. I primarily help sellers (homeowners, property owners, condo owners, owners of high end homes and properties (estate homes, luxury homes and executive homes), real estate investors, home builders and real estate developers) of distressed real estate, short sales, pre-foreclosures, foreclosures, investment properties, failed new construction projects and struggling commercial real estate developments located in Middle Tennessee (Rutherford County TN, Williamson County TN, Davidson County TN, Robertson County TN, Maury County TN, Murfreesboro TN, Smyrna TN, La Vergne TN, Eagleville TN, Lascassas TN, Rockvale TN, Christiana TN, Brentwood TN, Franklin TN, Nashville TN, Belle Meade TN, Nolensville TN, Spring Hill TN, Gallatin TN, Springfield TN and Mt. Juliet TN). If you do need to short sell your home or property, or you need a quick sale due to being in foreclosure, you can request short sale and foreclosure help and assistance on my website at Get Short Sale and Foreclosure Help and Assistance from a Middle Tennessee Short Sale and Foreclosure REALTOR and Real Estate Expert.