Foreclosure as Stimulus

In a broader piece on why we should allow the foreclosure process to continue unimpeded for the benefit of all involved, Barry hits on something that I’ve thought about myself:  People who don’t belong in the home they’re hanging onto in the first place aren’t doing their local economies any favors:

From The Big Picture:

Increasing Economic Activity: The areas of the country with the greatest foreclosure rates have seen a big increase in real estate activity. Look at California and Florida — they have seen enormous upticks in RE activity versus the lower foreclosure states.

When someone purchases a home they actually can afford, they end up spending quite a bit of money on additional goods and services. They do renovations, hire contractors, make durable goods purchases, they paint and repair, they buy cars, they spend money in the local community.

The people who are hanging on by their fingernails, however, do none of these things. They end up paying a vastly disproportionate amount of their incomes to service their mortgages. This is not productive economic activity.

There is a legitimate case to be made here and it is, of course, a Free Market argument.  Click over to TBP for some other reasons why extend and pretend is not helping anyone but the banks.

Source:

More Foreclosures, Please… (TBP)

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers

Please see disclosures here.

What's been said:

Discussions found on the web
  1. بازاریابی شبکه اجتماعی commented on Oct 18

    شبکه اجتماعی

    Does your web site have a get in touch with page? I’m having a hard time locating it but, I’d like to shoot you an e-mail. I have received some creative ideas for your weblog you may well be interested in listening to. Both way, great blog and I search…

  2. army deployment news commented on Oct 19

    army deployment news

    […]that could be the finish of this report. Here you will obtain some web sites that we believe you will enjoy, just click the hyperlinks over[…]

  3. ترمیم مو و کاشت مو commented on Oct 19

    ترمیم مو و کاشت مو

    you are truly a superb webmaster. The site loading velocity is extraordinary. It type of feels that you are performing any special trick. In addition, The contents are masterwork. you have accomplished a superb activity in this topic!

  4. polidomes commented on Oct 19

    polidomes

    […]just beneath, are several absolutely not connected web pages to ours, even so, they’re surely worth going over[…]

  5. Email Archiving commented on Oct 20

    Email Archiving

    […]Here are a number of the sites we recommend for our visitors[…]

  6. دوربین مدار بسته مخفی commented on Oct 22

    دوربین مدار بسته مخفی

    Hey! I know this is somewhat off subject matter but I was pondering if you understood where I could get a captcha plugin for my comment form? I’m making use of the exact same website platform as yours and I’m getting difficulties finding 1? Many thanks…

  7. دوربین مدار بسته خودرو commented on Oct 22

    دوربین مدار بسته خودرو

    I absolutely adore your weblog and discover a whole lot of your post’s to be specifically I’m hunting for. Does one particular supply guest writers to create content obtainable for you? I wouldn’t brain producing a post or elaborating on a handful of o…

  8. karate isn’t just for kids commented on Oct 22

    karate isn’t just for kids

    […]check below, are some totally unrelated web-sites to ours, nevertheless, they are most trustworthy sources that we use[…]

  9. بازاریابی محتوا commented on Oct 23

    تولید محتوا

    Wonderful website! I discovered it while searching on Yahoo News. Do you have any tips on how to get listed in Yahoo News? I have been striving for a while but I never ever appear to get there! Thank you

  10. software reviews commented on Oct 24

    software reviews

    […]although websites we backlink to beneath are considerably not associated to ours, we feel they may be in fact really worth a go via, so have a look[…]

  11. kona coffee commented on Oct 26

    kona coffee

    Best Kona coffee how to guide for coffee beans. Assisting you in your choice, the following are useful steps on best practices picking the best Kona coffee beans. #1 RULE: Never reheat your Kona coffee.

  12. تولید کننده محتوا commented on Oct 27

    تولید محتوا گراف تیم

    Fantastic weblog! Is your topic customized made or did you down load it from somewhere? A design and style like yours with a handful of easy adjustements would truly make my site stand out. Please let me know where you obtained your design. Bless you

  13. armytrix exhaust tuning price commented on Oct 27

    armytrix exhaust tuning price

    […]Here are a number of the internet sites we suggest for our visitors[…]

  14. بازاریابی شبکه اجتماعی commented on Oct 27

    بازاریابی شبکه اجتماعی

    Hey there, I feel your site may well be getting browser compatibility issues. When I appear at your web site in Safari, it looks wonderful but when opening in Net Explorer, it has some overlapping. I just wanted to give you a fast heads up! Other then…