Foreclosures explode in CA

As expected, foreclosures are going through the roof here in CA, and the Bay Area isn't immune. I had a great conversation with some business school friends last night about the housing market, and my point of view is that things will actually continue to get worse before they get better.

Here is the story from the SF Chronicle that details the most recent stats.

Here is the image from the story... it goes without saying that this picture is worth more than a thousand words:

Back end of housing bust...

Up and down the economic value chain of the housing market there has been pain recently. I am clearly a housing bear, and having friends working on wall street, specifically in CDOs, gives me a little insight into how they are viewing paper these days.

Here is a must watch video if you want to understand why the worst is probably still to come with respect to the housing market. Remember, when wall street loses it's appetite for mortgage backed securities there will be a huge trickle down effect to consumers: