The BBC reports that there has been a 93% climb in home foreclosures (also known as repossessions) over the past year. This is part of the credit problem that has been widely blamed for the falling stock prices over the past couple years. The BBC says there has also been a corresponding surge in layoffs at construction and real estate companies.
There was a 93% jump in filings for repossessions on the same month a year ago, and a 9% rise on June's figure, property firm RealtyTrac said.
The mortgage industry has been hammered by rising default payments.
Separate data showed a surge in job losses in the construction sector and among real estate firms, largely prompted by the slump.
Falling sales and decreasing prices have made it harder for homeowners who have hit difficulties to sell their homes and clear their debts.
The RealtyTrac data showed there were 179,599 foreclosure - or repossession - filings in July. This equates to one for every 693 households.
If the credit crunch continues to escalate there could be additional fallout from jobs lost in the housing sector and from a reduction in spending as homeowners become concerned about the falling value of their stock portfolio and home value. Even wealthy individuals may tighten spending if they watch the value of both their home and their investments shrink.
Writers Write, Inc. Launches Fantasy Science Fiction Blog
Writers Write, Inc. has added a new blog to its blog network called FantasySFBlog.com. Fantasy/SF Blog is a daily blog covering what's new and interesting in the worlds of fantasy, SF, and horror, including books, movies, TV and gaming.
After stocks fell again because of credit concerns CNC's Jim Cramer gave an intense and passionate outburst about the market and the Fed during an interview with Erin Burnett. Cramer is calling on the Fed and Fed Chairman Ben Bernanke to lower interest rates. Here is a video clip of Cramer's outburst.
You can also see the video here on CNBC. The Big Picture has a transcript of Cramer's live rant and says it is "destined to become a classic Wall Street legend." It seems like it already has. A lot of blogs and media outlets are covering it. Seeking Alpha calls it the rant "heard around the world." Here's another take on it from TheStreet.com. See also The Mortgage Insiders, Investment Postcards, Ugly Chart, AllDay and InMan Blog.
Adding a little justification to Cramer's legendary rant the subprime problems expanded internationally and the market fell into additional trouble on Thursday.
Writers Write, Inc. has added a new blog to its blog network called 