Sunday, November 2, 2008

"Dirty" Foreclosure Data

In a previous post, I mentioned that loan defaults have a debilitating impact on the financial system by draining it of reserves. Therefore, delaying or preventing foreclosures, although detrimental to the bottom line, would assist the Federal Reserve in supporting the money supply.

In addition, some states are changing their foreclosure notification procedures, which is creating the false impression that the bottom of the crisis is here:

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