'Underwater' U.S. homeowners a ticking-bomb

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While U.S. talking-heads were gushing about a one-month surge in residential construction (which adds LOTS of extra inventory to all-time record levels), Reuters published an article about what is potentially the most-damaging trend in the U.S. housing collapse.

“Underwater” mortgages, homeowners who owe more than their homes are worth, are soaring by the day. Even more troubling is that these “underwater” mortgages are concentrated in a few, key markets. The numbers are staggering.

More than 50% of ALL Nevada mortgages are “underwater”. This horrific number greatly exceeds 2nd place Arizona (at 32%). What is truly catastrophic however, is that California and Florida are tied for 3rd place – with 30% of all their mortgages “underwater”.

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