RISING US HOME DELINQUENCY DOES NOT AFFECT THE GDP MUCH, CONSUMER CONFIDENCE DOES

quote: "Success is a thought process"

http://www.finfacts.com/irelandbusinessnews/publish/article_10008352.shtml

Key findings refering to the above post.

1. Home owners with bad credit history who could not pay on time (3 months or more late in payment) - 8% of 625 Billion. (Total US housing market 10Trillion)

IMPACT

1. Rising very fast from 4.5% to 8% delinquency in payment. Expected to rise faster as credit tightens.
2. Estimated that if all 8% of these are affected, that would equal about 50+ billion USD worth of housing to be affected and possibly foreclose. The US GDP is worth more than US$13,000 Billion. This US$50+ Billion is minuscule compare to the total US economy.
3. In terms of numbers, this hardly put a dent into the US GDP. However, what is harder to estimate will be the knock-on effect on consumer confidence and their propensity to spend. A small percentage impact on consumer confidence leads to a much larger rise or drop in consumption leading to a bigger economic impact as consumption represents greater than 70% of the US 13 Trillion economy.