Wednesday, December 29, 2010

Happy 2011? Then read something else!

After ringing out a not so great 2010, some not so great predictions for 2011

With 2010 filled with disappointing US economic growth, the stated US unemployment rate hovering close to 10% with an actual rate is closer to 17-18%, the bailout of 2 of the 4 EU PIGS (with the other 2 not far behind) and a foreclosure crisis that may just be starting due to rampant fraud having potentially occurred in the process, what do we have to look forward to in 2011?

Some potential 2011 events

Portugal may soon be in need of life support and once that happens will there be enough left in the tank to take care of Spain.

While the US economy has shown some signs of life and the Fortune 500 companies had a decent year, the majority of any jobs that they created were outside of the US. Will jobs and economic growth be any better in the coming year?

While not a commonly known acronym, 2011 might find greater name recognition for a little known corporate entity by the name of MERS. MERS is an electronic database created for the most part by the mortgage industry as a way to streamline the process of storing mortgage documents and notes and avoiding recording fees while helping to supercharge securitization.

In the process MERS, along with robo-signers and faux VPs with fudged notarizations may have fraudulently foreclosed on borrowers and taken away their property. Not to say the borrowers weren't delinquent, but did the entity foreclosing have the right to do it?

It remains to be seen as there are more twists and turns than a mountain road, but banks could be left holding a rather large bag.

So what are some prognostications for 2011?

Two articles that explore the coming year from Zero Hedge definitely worth reading

The first makes some strong predictions for volatility, commodity prices, the global economy, deficits, quantitative easing, equity prices, domestic and global politics, social unrest and even the weather.

The title of this article is "2011 - What's coming?" and it can be found at this link.

The second article is about the "double dip" that the housing market has already entered into, and the fact that the expiration of the first time homebuyers tax credit and the moratorium on foreclosures will only exacerbate the problem. The interview with Nouriel Roubini also touches on the crisis in the EU, long-term structural deficits and state and local governments teetering on the brink of bankruptcy.

The article, "It's pretty clear the housing market has already double dipped" can be found at this link.

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