USAF

The Mother of All Financial Disasters? Now that the housing and mortgage debacle is beginning to unwind, foreclosures are hitting the streets as fast as the "SOLD" signs that preceded them just a few short years ago. In fact, the number of U.S. homes that slipped into some form of foreclosure in 2007 was 79% higher than the previous year. The media is covering the nation's rising foreclosures, but what no one's talking about is that evidence suggests we haven't even seen the worst of the mortgage crisis yet. Analysts estimate that there is some 25-30% downside left over the next two years. Not to mention the crumbling of all of the industries housing supports — think construction, manufacturing and related industries — all of which rode the housing wave on its way up, will also feel the effects of its downturn. When will it all end? Billionaire investor George Soros says not any time soon. He recently told Dow Jones, "the worst of the fallout is yet to be felt."