Just 10 years ago we were approaching the new millennium not with wonder and anticipation but with fear and loathing. Seems someone forgot to tell the computers how to change their clocks and right at the stroke of midnight the modern world as we know it would end, not with a bang but a whimper.
Banks couldn’t shuffle money and trains would not run; sure calamity and ruin awaited us all.
It didn’t happen, of course, but it was good at generating sales as people stocked up and waited for the power to go out. As a matter of fact, it generated a lot of generator sales, most of which now sit in people’s garages and have never been used.
Lately, the fear has been a persistent, yet unproven, urban legend that the worst is yet to come and that a tsunami of foreclosures are working their way through the process and will come to market soon. A raging torrent of vacant houses swamping the market and sinking prices another 14%.
“Just wait until those rate resets occur.” some have said.
Speculation has included a surge in homeowners withholding payments in an effort to force a mortgage modification and laid off workers who will soon run out of benefits, wanting to have some cash for food and utilities. We know this group exists, but it has been difficult to determine the extent of it. The rest is easy to track.
Just as the so-called experts have been wrong about just about everything else, many are also wrong about the numerous facets of our current foreclosure panic.
Read George W. Mantor’s full article “Is the Foreclosure Panic the Y2K of Our Decade?” in RISMedia (August 11, 2009).