Housing Market Spirals, No End in Sight
Holy cow batman. Things are in the shitter and in the shitter big time. I'd love to see the NAR spin this away.
NEW YORK (AP) -- Nervous homeowners and economic analysts have been wondering how much worse the housing market could get. On Thursday they got an answer: Plenty.Well those nervous Nellies could have stopped their wondering and read this little old blog over the past 6 months. They would have known what was coming. Instead they listened to so-called experts. Oh well better luck next time.
Que? But it was supposed to be a new paradigm. House prices never fall. What the heck happened? Oh I know. ECONOMIC FUNDAMENTALS happened. The same economic fundamentals that were ignored 2001-2006. Better luck next time.
For the first time since the Federal Reserve started tracking the data in 1945, the amount of debt tied up in American homes now exceeds the equity homeowners have built.
Experts believe foreclosures will rise as more homeowners struggle with monthly payments as the interest rates on their mortgages adjust higher. Problems in the credit markets and eroding home values are making it harder for people to refinance their way out of unmanageable loans.No shit! Really? Are these geniuses the same experts who a year ago were saying nothing to worry about, all is well, subprime is contained, now is a great time to buy? Those experts? Come on MSM you cannot be that lazy still.
"People were relying on home equity to maintain consumption. They can't keep doing that once the equity's gone," said Dean Baker, co-director at the Center of Economic Policy Research. "Undoubtedly, this is one reason for the falloff in consumption in last couple of months."You don't say? Again really? No wonder Dean rose all the way up the ranks to co-dean. This guy is a genius when it comes to stating the obvious. Hey Dean, where were you 12 months ago?
A massive loss in home equity could even mean some Americans won't have enough money to retire. On average, housing is Americans' single largest asset, representing 39 percent of a household's total net worth.Impossible. I was assured time and time again by experts that housing prices never fall. And it is also impossible because I was told over and over that housing is the greatest investment anyone can make.
And the stupidest quote of the article and of the day and of the month and hell of the decade:
"At the end of the day, these efforts will be insufficient," Zandi said. "Policymakers will need to be more aggressive and put taxpayer money on the line to stem this. Ultimately, we will find a bottom, but it would be a mistake to let the market run its course."No you asshole, it would not be a mistake. It will be the only right thing to do. I don't want my tax dollars bailing out the dolts who were too stupid to see this coming. Screw them and screw you.
How much does anyone wanna bet Mark Zandi has a substantial amount of money tied up in real estate? Yeah no conflict of interest in that story. Way to go once again MSM.