“Home buyers saddled with debt as repossessions continue”. Sigh… this was all sadly predictable years ago.
What happens if you combine a weakening global economy with off-shoring of local jobs and a rapidly softening local housing market?
A weakening global economy means global spending is getting tighter. While Bermuda is typically quite shielded by such events is there a guarantee that Bermuda will feel no side effects? Further, will the off-shoring of local jobs mean a decrease in overall employment levels, subsequently decreasing local spending? Spending that keeps many supplementary industries afloat? Finally, what happens if the housing market continues to soften and a large number of mortgage holders (especially those with interest only loans) wake up to realize that the value of their home has dropped and they now are in a state of negative equity if they try to sell?