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. طراحی سایت commented on Nov 08

    طراحی سایت

    I was curious if you ever considered of modifying the structure of your website? Its really nicely written I really like what youve received to say. But perhaps you could a little far more in the way of content so men and women could join with it far b…

  2. vibrating ring commented on Nov 09

    vibrating ring

    […]please check out the websites we follow, such as this 1, as it represents our picks through the web[…]

  3. digital marketing app commented on Nov 09

    digital marketing app

    […]that could be the end of this report. Right here you will discover some internet sites that we think you’ll value, just click the links over[…]

  4. فروش دوربین مدار بسته commented on Nov 10

    فروش دوربین مدار بسته

    Hey, I think your internet site may be getting browser compatibility troubles. When I appear at your website in Chrome, it appears fine but when opening in Net Explorer, it has some overlapping. I just desired to give you a quick heads up! Other then t…

  5. خرید اپل ایدی commented on Nov 10

    خرید اپل ایدی

    Appreciating the time and energy you place into your website and comprehensive information you offer you. It is fantastic to arrive across a blog every as soon as in a even though that is not the same unwelcome rehashed info. Superb study! I’ve saved y…

  6. real life sex dolls commented on Nov 11

    real life sex dolls

    […]here are some hyperlinks to web pages that we link to for the reason that we believe they’re really worth visiting[…]

  7. west palm beach vacation rentals commented on Nov 11

    west palm beach vacation rentals

    […]Every after inside a whilst we decide on blogs that we study. Listed below would be the most current web pages that we choose […]

  8. خرید اپل آیدی commented on Nov 11

    خرید اپل ایدی

    Publish much more, thats all I have to say. Literally, it would seem as even though you relied on the movie to make your point. You obviously know what youre talking about, why squander your intelligence on just submitting videos to your web site when…

  9. wild orchid toy commented on Nov 11

    wild orchid toy

    […]that will be the finish of this write-up. Right here you will come across some web-sites that we assume you’ll value, just click the hyperlinks over[…]

  10. thrusting rabbit vibrator commented on Nov 12

    thrusting rabbit vibrator

    […]although web-sites we backlink to below are considerably not connected to ours, we feel they may be actually really worth a go through, so have a look[…]

  11. card for amazon payment commented on Nov 12

    card for amazon payment

    […]Here are a few of the web-sites we suggest for our visitors[…]

  12. receive sms r whats app verify commented on Nov 13

    receive sms r whats app verify

    […]although internet sites we backlink to beneath are considerably not connected to ours, we really feel they’re essentially really worth a go via, so have a look[…]

  13. favorite sex toys commented on Nov 13

    favorite sex toys

    […]check beneath, are some completely unrelated sites to ours, even so, they may be most trustworthy sources that we use[…]

  14. oplata smieciowa warszawa commented on Nov 13

    oplata smieciowa warszawa

    […]the time to read or visit the content or web-sites we’ve linked to beneath the[…]