Thu 4/5/12. Get ready.

This post is not about near-term stock action. I made a minor SPX update on the previous post this morning. This brief post is about real estate. Check out these 2 articles.

http://www.zerohedge.com/news/second-foreclosure-tsunami-coming-and-about-kill-any-hopes-housing-bottom

http://www.market-ticker.org/akcs-www?post=204372

You may or may not agree with those 2 sources, but I live in Central Florida and have intimate knowledge of tens of foreclosures in my area over the last 3 years. Although there was a brief foreclosure push early on, foreclosures were mostly stalled for legal, financial, political and economic reasons. But, foreclosure action has significantly ramped up in Q1 2012 and there are millions of distressed homes to work through. That's a lot of free living about to be erased. Home prices in my area have already dropped for the last few months back to their previous lows of the recession and it looks like they will drop 5-10%+ more (even Case-Schiller and other professionals say so), although other areas of the country probably have more excess to squeeze out. This is likely to show up in the economic numbers over the next 6 months probably snowballing near the elections making Christmas a retail dud. It's hard to say how far SPX will drop and then rally between now and the elections, but late 2012 and 2013 is setting up for another a worsening recession. Good luck.