Still not convinced that the strong second quarter growth was nothing more than a mirage? Here's something that may change your mind: A report released by the Mortgage Bankers Association today shows that a record 1.249 million homes were in foreclosure during the second quarter. In addition, from the end of March to June 30, 2.9 million homeowners were delinquent on their mortgage payments - up 25% from the same time period last year. Our friends at Strategic Investment warn that there is an even bigger property bust on the horizon - in commercial property. The bust could be worse for banks, stocks and the U.S. economy as a whole than the current residential debacle...an almost unbelievable notion. Bloomberg says that the United States could see the worst drop in commercial property since the 2001 recession and Morgan Stanley is calling for a 15% drop over the next 2 years.
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