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Christopher Foote, a senior economist at the Federal Reserve Bank of Boston, who studied negative equity in Massachusetts during the late 1980s and early 1990s when home prices dropped 23%, argues that most walk-aways are likely driven by the combination of two things: both negative equity and an economic hardship, such as job loss. (See 10 ways your job will change...
Data from the new paper also point to the likelihood of mass walk-aways being a highly localized event. Sapienza and her colleagues plotted data on late mortgage payments and home-price declines and found very little relationship between the two when house prices in a metropolitan area had dropped less than 20% from their peak. However, once prices had fallen more than 20%, a disproportionate number of people wound up behind on their mortgage payments, even when the unemployment rate (a measure of means to pay) was held constant...
...contaminated area in his heavy haz-mat suit, looking like an astronaut on Mars, complete with an R2D2-like robot on wheels. He disables the IED, and as he walks away, his comrades spot a man about to use a cell phone. The spaceman turns and runs. Too late: BOOM! The bomb explodes and so does he. Blood seeps down his helmet visor like red rain on the wrong side of a car windshield...
...eyes search out the camera, begging to tell a story, but it is too late: she is dying as we watch. The videotaped killing of Neda Agha-Soltan, pierced through the heart by the bullet of an unknown assailant as she watched a demonstration in Tehran, is forbidden viewing in Iran. But for the world, it has become the defining image of the protests that followed her country's widely discounted presidential election. From Berlin to Los Angeles to the Iranian expatriate community of Tel Aviv (above), the image of her bloodied face has been carried aloft by outraged protesters...
When Alaska Governor Sarah Palin announced her intention to resign on July 3, many assumed there must be a looming scandal. Why else make the surprise announcement late in the afternoon before the July 4 holiday - the equivalent of a news black hole - in tones that varied from angry to anxious? Palin even hauled her husband back from a commercial fishing trip to be by her side...