And the numbers are huge. The financial blog Calculated Risk, using data from First American CoreLogic, estimates that if home prices fall 20 percent there will be 13.7 million homeowners with negative equity. If prices fall 30 percent, that number would rise to more than 20 million.
—Paul Krugman - NYT Op/Ed … While I really despise Krugman’s ability to over politicize more than any published Econmist on the planet currently, his point is valid and salient. Negative equity wouldn’t be a big deal if people could refi, we all know that is no longer an option with subprime grinding to a hault last May.
