US forecasts by Credit Suisse
Credit Suisse forecasted that U.S. home foreclosures over the next four years would amount to 8.1 million from 6.5 million, as a warning of a ‘subprime society’ as economic weakness and falling home prices take a larger toll on homeowners.
Credit Suisse analysts also state that this is an increase from April’s forecast representing a 16 percent hike of all mortgages. With the severe recession appearing more likely, coupled with the collapse of confidence in housing and resultant foreclosures, the impact on credit scores, risks at transforming the U.S. into a subprime society, say sources. The U.S. government is expected by economists to report the nation’s unemployment rate rose to 6.8 percent, the highest in 15 years, in November 2008.
