Important Article: Nouriel Rabini

Here's a very telling, and important, article from Noureil Rabini.

The article is not that long.......but VERY comprehensive....and it covers the housing market and the unemployment picture in concise detail. One of the most important paragraphs from the article is as follows:

Home prices have already fallen from their peak by about 27 percent. Based on our analysis, they are going to fall by at least another 40 percent, and more likely 45 percent, before they bottom out. They are still falling at an annualized rate of over 18 percent. That fall of at least 40-45% percent of home prices from their peak is going to imply that about half of all households that have a mortgage – about 25 million of the 51 million that have mortgages – are going to be underwater with negative equity in their homes, and therefore will have a significant incentive to just walk away from their homes.

Keep in mind that this article was done 2 days ago....July 2nd.