It's unbelievable because that's not what the map shows.

The 40% whose homes are "underwater" are 40% of those who bought between 2005-2008, NOT 40% of all homeowners.

Your shock reveals how the media have played this story.

I asked a PhD in the office to estimate the percentage of American mortgages that were threatened by foreclosure. The answer? 20 to 30 percent.

The actual figure is about 1 in 500, or a fifth of a percent.

Even among the high-risk sub-prime loans, the percentage in foreclosure is only 2 to 3 percent.

99% of the mortgage holders at Countrywide were good risks. When the bad risks were foreclosed and bounced out, the remainder were 100% and the Bank of America picked up their loans at a significant discount. That was a real steal.
Gandalin | 05.07.08 - 2:23 pm | #

all great points. i should stop linking to the globe.
Tzemach | Homepage | 05.07.08 - 2:26 pm | #

Maybe so.

And as others have said, enjoy reading your insights again.
Gandalin | 05.07.08 - 3:45 pm | #