Comment Go to about the four minute mark on this video and you can hear why we and Meredith Whitney remain concerned about the next leg down for housing, and the fact that banks are ill-prepared to deal with lower housing prices. Whitney also believes that the Fed's scheduled exit from the mortgage-backed securities market, over the next two weeks, will be met with a "material" correction."
"Government programs to support housing have been "murky" and when the modifications caused by them come to an end, a lot of supply may come to the market and that's when the real-estate is likely to go down," she says. "Hopes that an improvement in liquidity and continuing investment from China in US assets will prop up mortgage-backed securities (MBS) and Treasurys are exaggerated."
A sizable wave of foreclosures is on its way, too. Here's how to profit before the storm.
