Strategic Defaults next door

Another New York Times article points out that homeowners with mortgages over $1M are almost 2x more likely to stop paying their mortgages. They highlight Los Altos in the article which is next door to us in Palo Alto and should definitely impact prices in the areas we are looking like Mountain View.

http://www.nytimes.com/2010/07/09/business/economy/09rich.html

Congress has decided not to extend unemployment benefits (more info). Here are some graphs showing unemployment in my area. This may increase the foreclosure rate.