HELOC...Heres a term you are going to hear more and more about in the coming 18 months. It stands for Home equity lines of credit. It is what I believe to be the global financial killer. HELOCs are second mortgages that existing homeowners took out in the bubble essentially using their first home as a giant ATM. From next year these mortgage holders who up to now having been paying interest only will now have to make principal payments to. This means an increase on average from $400 to $1,200 per month. The subsequent default I believe will trigger crisis 2.0 that willl make 2008.... well lets recall Armageddon for a second with Bruce Willis.For me the 2008 crisis was the smaller meteor that took out Paris. Whats coming in 2015/16 is the global killer. Bank of America has a $90B exposure and Wells Fargo about $60B except this time its major shareholder Warren Buffet wont be able to pawn it off to the federal reserve bank because theyre bust too fighting wars left right and centre. 1929.... its a picnic to whats coming.
Posted on: Thu, 04 Sep 2014 10:23:42 +0000
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