Unemployment Could Cause Even More Mortgage Loan Defaults in 2010
Posted on | November 11, 2009 | 1 Comment
World Bank President Robert Zoellick has expressed his concerns that high unemployment will cause even more mortgage loan defaults in 2010. He feels that the high levels of unemployment are likely to cause delinquencies in credit cards and many home owners will not be able to make their mortgage payments. This, in turn, will cause banks to continue to struggle due to bad loans.
The United States unemployment rate recently reached a 26 year high of 10.2% for the month of October. Zoellick feels that there is a good chance that the unemployment rate will stay at these levels through 2010. The government has done a lot to get the economy restored through the stimulus plans but eventually consumers are going to have to start spending and businesses are going to have to start hiring.
Until we see the consumers change their spending habits then it is likely we are going to see an economy that lags. Unfortunately, these consumers do not have any money to spend because they are trying to catch up on debt payments or, even worse, they are unemployed. With this being the case, there is a very good chance that we will continue to see many mortgage loan defaults in 2010.
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Author: Jesse Wojdylo
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November 12th, 2009 @ 4:07 am
[...] WorldBankPresidentRobertZoellick has expressed his concerns that high unemployment will cause even more mortgage loan defaults in 2010. He feels that the high levels of unemployment are likely to cause delinquencies in credit cards and many home …Read Original Story: Unemployment Could Cause Even More Mortgage Loan Defaults in 2010 – Subpr… [...]