The following video features Harry Dent discussing the current market recovery and warns about the ticking time bomb…aka, loan defaults, foreclosures and unemployment and their relationship.
Dent predicts that we will see a foreclosure impact in the first quarter of 2011, 48% will have negative equity positions (mortgage principal higher than the market value) and 50% of those will be “severely” over-levereraged. We have $17 trillion in financial sector debt…all of it based upon leveraged borrowing.
Dent predicts unemployment, mortgage defaults and the worst of the crisis will be early to mid 2011.
According to Dent, “We are going to see the economy worsen again…we are seeing a recovery but it is not sustainable…next year is not going to be the year of recovery that most economists are promising.”
WATCH THIS and post a comment.