Look at this insanity…

I would never have thought this many major cities would have 11%-plus mortgages underwater… especially not at the top of a second real estate bubble.

How bad will it be when we move into the next recession depression?!

Look at Hartford, Connecticut: 43% of mortgages there are under water!

How could that be?

It’s similar to three of the other top five in that it’s more an industrial city, so it could be that it’s suffering the fate of those rust belt places, which tend to be the worst without major real estate bubbles thanks to weak incomes and demand.

In short, they’re just slowly dying.

Jacksonville is #2, with 39% of mortgages underwater. It’s an old-line insurance city, not the vacation or retirement mecca of other major Florida cities that are booming and bubbling.

Detroit, Cleveland, and Newark fit that rustbelt stereotype with 36%, 31%, and 29% of mortgages, respectively, underwater.

The next nine, from Milwaukee to Kansas City also lean toward the industrial classification.

My two previous home cities, Miami and Tampa, have 13% and 11% of mortgages underwater respectively, despite a rising real estate market.

But who’s not on this list?

The big bubble cities like San Francisco, L.A., New York, San Diego, D.C., Boston, and Seattle. Sure, they have sky high property prices, but that doesn’t put you underwater as it only increases your equity.

Of course, while they don’t have such a dangerous mortgage situation developing now, they’re still red-hot danger cities because the bigger the bubble, the bigger the burst.

Now, as data is increasingly revealing, real estate is slowing down fast. And like 2006, it’s leading the way for a broader slowdown. On November 12 last year, I showed how the U.S. Home Construction Index has been leading stock market tops by about 26 months.

My Dark Window scenario indicates we’ll see that final top in the markets later this year into early 2020. The long lead time of that index adds yet more supporting evidence.

This is just another trend that clearly warns of a recession/depression ahead, but only after we likely witness the rare Dark Window opportunity that few see coming… one last bubble to end all bubbles!

Harry
Follow me on Twitter @harrydentjr

Harry Dent
Harry S. Dent Jr. studied economics in college in the ’70s, but found it vague and inconclusive. He became so disillusioned by the state of his chosen profession that he turned his back on it. Instead, he threw himself into the burgeoning new science of finance where identifying and studying demographic, technological, consumer and many, many other trends empowered him to forecast economic changes. Since then, he’s spoken to executives, financial advisors and investors around the world. He’s appeared on “Good Morning America,” PBS, CNBC and CNN/Fox News. He’s been featured in Barron’s, Investor’s Business Daily, Entrepreneur, Fortune, Success, U.S. News and World Report, Business Week, The Wall Street Journal, American Demographics and Omni. He is a regular guest on Fox Business’s “America’s Nightly Scorecard.” In his latest book, Zero Hour: Turn the Greatest Political and Financial Upheaval in Modern History to Your Advantage, Harry Dent reveals why the greatest social, economic, and political upheaval since the American Revolution is on our doorstep. Discover how its combined effects could cause stocks to crash as much as 80% beginning just weeks from now…crippling your wealth now and for the rest of your life. Harry arms you with the tools you need to financially prepare and survive as the world we know is turned upside down! Today, he uses the research he developed from years of hands-on business experience to offer readers a positive, easy-to-understand view of the economic future by heading up Dent Research, in his flagship newsletter, Boom & Bust.