tag:blogger.com,1999:blog-11027528911364475.post3453341777280009292..comments2024-02-18T21:10:05.205-08:00Comments on EconomPic: EconomPics of the Week: See You in 2010 EditionJakehttp://www.blogger.com/profile/07946497592651234440noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-11027528911364475.post-82399435572568286522009-12-28T18:27:42.379-08:002009-12-28T18:27:42.379-08:00Eric- you are forgetting about the other side of t...Eric- you are forgetting about the other side of the equation. Each mortgage not paid = principal and interest not received by the owner of that mortgage.<br /><br />The question is which side has a higher multiplier to the broader economy:<br /><br />A) the person paying $2000 less (spending $2000 more or less than that because they may be out of a job) <br />B) the owner of the loan having less wealth as a result of a mortgage on a home that is in default (i.e. a home worth 30%-40% less when resold) = a loss in the ten to hundred thousands for a mortgage of $4000 / month.<br /><br />Not sure how stimulatory this is...Jakehttps://www.blogger.com/profile/07946497592651234440noreply@blogger.comtag:blogger.com,1999:blog-11027528911364475.post-60130842539044245912009-12-27T20:28:54.144-08:002009-12-27T20:28:54.144-08:00Hi Jake, I was reading about the mortgage delinque...Hi Jake, I was reading about the mortgage delinquencies at 10%-14%+ overall and thinking how that is breathtakingly high. I read an article about how people are really enjoying being out of their mortgage because their $4k/month mortgage payments are reduced to $2k/month in rental payments. They've got about $2k/month left over for spending.<br /><br />But with the trillion dollar mortgage market and 10%+ of all mortgages delinquent would that be a massive massive economic stimulus? <br /><br />If the mortgage market is $10 trillion and 10% are delinquent that is $1 trillion not being paid on.<br /><br />I'd love for you to do a post titled, "Mortgage Delinquencies as Economic Stimulus" and chart how much money has been freed up to spend on the economy by people not paying down their mortgage.<br /><br />I suspicion this is on the order of $100 billion a year.<br /><br />EricAnonymousnoreply@blogger.com