What chances of a US recovery? Don’t hold your breath. As reported here, foreclosures will keep rising through 2010 and one in seven US home loans is now past due or in foreclosure. The quarterly delinquency measure is at its highest level since 1972.
br />All up, just over 14% of US home loans are in foreclosure and this mirrors what’s happening in the labor market with US unemployment officially up to just over 10% with the real figure at 17.5%.
What’s just as concerning is the fall in the amount of construction which, as an industry, has always dragged the US out of recession.
These figures remind us how dependent the US has now become on Government funding, both for the construction and for managing foreclosures.
And until the housing sector is fixed – and that would require a turnaround in employment – the US economy will remain in dire straits.
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