Even the Good go Bad

Just in from the NYT, the report on job losses now whacking good borrowers into foreclosure.

The vast swaths of real estate that sit empty across this country will take a while to fill in, meanwhile, as long as they're out there real estate values will be supressed.

The impact on commercial real estate will follow the old dictim, "Retail follows rooftops."

If homes are empty, retail strips and stores will be empty as well. No one's out there buying much of anything.

If you did not have value in your home (and decide to stay in it), the only money you'll have is from savings (credit cards aren't of much help right now). A higher savings rate means money is not going into the economy.