$2-$6 Trillion … POOF! Gone!

Lords of Housing: Believing in the $22.5 Trillion Housing Market

Given this information, we can estimate that the current total residential housing value is roughly $20.15 trillion. ($10.5 trillion in mortgage debt + $9.65 trillion in equity)

If we then extrapolate this information with the recent Case-Shiller Index decline, we realize that over $2.41 trillion of residential housing value has evaporated into thin air

($20.15/.893)=($22.5644) | $22.5644 – $20.15 = $2.41 trillion

Keep in mind that we are not using the peak price of the market. Estimates range from $23 to $24 trillion. It is becoming rather clear that when all is said and done, we may be seeing 20 to 30 percent nationwide declines in home prices. How much more equity will this destroy? Let us run the scenario further:

I can’t run the chart here. So click to see it.

What’s not mentioned: All those eejits who wrecked their foreclosed homes. In a just world, those people will never be granted another mortgage.

Subtract those former buyers from the pool of future buyers.

So even if some greedball is out there licking his chops, salivating over a possible $6 trillion upside in years to come — it won’t happen.

Explore posts in the same categories: C.O.A.T. - Belief, C.O.A.T. - Money, C.O.A.T. - Scams, Depression 2.0

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