January 18, 2010

It's the economy, Harry.

News is out today about an expected 3 MILLION home foreclosures in 2010, and as many as 10 million through 2012.  That's bad.  Really, really bad.  You might not understand the specifics of how bad that is, but you aren't alone.  Apparently Harry Reid just doesn't get it either.  And while he might not "get it" those in his state seemingly do.  Or rather they are getting it, and they are getting it really, really bad...

RealtyTrac's housing prediciton is pretty gloomy looking at the next few years.  It doesn't mince words:

The Obama plan offers $75 billion to incentivize lenders to modify mortgages on a volunteer basis. Without forcing bankers to modify mortgages the plan was destined to fail from the beginning, and is presently viewed as a farce by real estate economists. Without a plan requiring lenders to deal with borrowers in jeopardy of foreclosure and force banks to negotiate the amount owed on mortgages, the crisis will only expand, triggering millions of more foreclosures. A Housing Predictor analysis has determined that the foreclosure epidemic could eventually affect one in six homeowners, or 25 percent of all mortgage holders.

Only 100,000 homeowners have been offered modifications by bankers under the current program, according to the Treasury Department, and fewer have actually taken them up on the offers. Under the plan, mortgage holders who do not qualify for a loan modification will undergo foreclosure, sell the property via short sale or hand the keys to their homes over and sign a deed in lieu of foreclosure instead.

Meanwhile Senate Majority Leader, Harry Reid is struggling at home in Nevada in the polls. As much as conservatives would love to blame it on his bitter, partisan and ineffectual leadership, including on the economy, it's even more basic than that.

Remember the saying all politics is local? Consider this Nevada is into the foreclosure crisis deeper than any other state;

Nevada had the highest foreclosure rate for the third straight year in 2009, with more than 10 percent of households receiving at least one filing. December filings fell 22 percent from a year earlier and rose 27 percent from November.
Nevada residents may be souring on Democrats in general, but Reid is a lightning rod for their anger - he's the Senate Majority Leader, his state is hurting badly and is forecast to do worse in the next few years as the falling tide lowers all boats.  Nevada is concerned about their own peril.  Reid isn't helping.  At all. 

If he decides to stick around he seems destined to lose.  Might he decide to step down, despite his re-election war chest?  Probably not.  That's actually good news for conservatives, as his replacement would no doubt be much more likely hav e a chance to win.

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