Foreclosure Stimulus to Boost Tech's Four Horsemen

Jason Schwarz submits:

There is a secret concerning high foreclosure rates that investors have yet to grasp. It's all about turning lemons into lemonade, something American consumers do so well. Analysts project 1 in 33 homeowners will face foreclosure over the next two years. These foreclosures will free up an additional $4 billion a month in consumer spending. Maybe this wave of foreclosures isn't so bad after all. If you eliminate the average monthly house payment by the standard 6 month foreclosure process then you can count on a $40 billion foreclosure stimulus being added to the economy. Maybe we should stop fearing a consumer collapse and start looking at the numbers.

Annual core retail sales are up 10.2% over the last three months. This data shows that those consumers who are supposedly 'strapped' are willing to take off the chains. We live in an era where disposable income is king. Americans feel more urgency to pay down credit cards than to make payments on a home that is underwater. The fear of foreclosure is quickly replaced by the freedom of additional spending money. This newfound money will provide thousands of dollars a month to those consumers struggling to pay the extra $100 a month on gas. There are three things that you can always count on: death, taxes, and the resiliency of the American consumer.

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