Despite Desperate Measures the Forecast for Foreclosures Is Gloomy For Phoenix

Posted in Foreclosure, November 4th, 2008 |

Despite desperate measures the forecast for foreclosures is gloomy. There seems to be little chances of a speedy recovery.

The house owners and business circles of Phoenix should not pin hopes on an economic rejuvenation at least for another year. After the resetting of sub-prime mortgages, the Valley is struggling through 67,000 new foreclosures. These houses stand eerie and empty begging to be sold. The downward trend of the economy of Arizona and its main driving force the real estate market will touch its peak in and about the third or the fourth quarter of the following year of 2009. The national reversal will not even start before the first quarter of 2010.

This is the opinion of Dean Martin, the treasurer of Arizona State. Don Reynolds, an economist of renown, echoes his sentiments. They were speaking to about 1,200 listeners and bluntly told them to accept the fact that either nationally or locally the foreclosure related money troubles are unlikely to come to an end in the immediate future.

Gloom is dominating the headlines as the financial system of America totters in the wake of the foreclosure crisis. The economic indicators are all pointing to bad days ahead. This is turn is affecting the developing countries. It has become almost like a psychological point, said Reynolds.

The event was being staged in a ballroom of Arizona Biltmore Resort & Spa. The participants were trying to find words of hope during the two and a half hour session but came away disappointed. All they heard were rumblings of storms and saw gathering in the horizon dark clouds for the coming year.

Reynolds stole the show in a typical Texan style wearing blue striped suit and flaunting a golden pocket chain. The maroon and white spotted tie brought little reassurance to the audience traumatized by the foreclosure crisis that has led to a credit crunch. There is no money available for lending, essential development work and important business expansion that would create jobs. Reynolds is the founder of a consultant company of Texas – 21st Century Forecasting.

He has in depth knowledge of the last 400 years of economic history. He noted that of the 42 developed countries he has focused on, 34 are beginning to economically stumble. The happenings in America have global ramifications. The credit crunch has reached such proportions that it is unparalleled in history.