I have heard lots of good stories about the housing crash recently. Most of them involve some kind of "we've bottomed" scenario. The others about how greedy Americans should learn from Europeans.
Americans are greedy. But so are Europeans. At least Americans don't hide the fact they're greedy and don't lecture anyone about it. European media can't quite accept this. Their deflating housing bubble is still blamed on the evil Yanks, as is everything else in the world. They can blame it on Santa Claus for all I care. Fact of the matter is, as I have stated numerous times before, this whole thing wasn't a housing issue. It was a global easy credit issue. Didn't matter if you were in Las Vegas or Miami or Barcelona or Dublin. The banks all over were handing out money to anyone with a pulse who said the world real estate. Kinda like in 1998 when all you had to do was say the words "dot com" and a check fro $5M would be written out to your name. Well, we all know how that turned out. And now the housing crash is happening worldwide, right on schedule.
Many in the media are still in the dark about the effects of this financial tsunami. So-called experts on CNBC are still talking about a mild recession and a housing bottom this summer. The same experts who said housing never falls.
So-called experts who are really real estate shills and charlatans like Dave Ramsey are telling their followers the economy is actually on an upswing now. The guy actually said he believes the economy bottomed 3 weeks ago. Never mind that it is impossible to pinpoint a bottom of a $13 trillion dollar economy to a specific day. Never mind that GE lost money for the first time in about 1000 years. None of that matters to Dave. His advice is always, go out and buy some real estate. And the fact he is in the real estate business is a moot point.
Maybe his listeners should read this from the International Herald Tribune:
The collapse of the housing bubble in the United States is mutating into a global phenomenon, with real estate prices down from the Irish countryside and the Spanish coast to Baltic seaports and even in parts of India.
This synchronized global slowdown, which has become increasingly stark in recent months, is hobbling economic growth worldwide, affecting not just homes, but also jobs. In Ireland, Spain, Britain and elsewhere, housing markets that soared over the past decade are falling back to earth. Experts predict that some countries, like Ireland, will face an even more wrenching adjustment than the United States, with the possibility that the downturn could turn into wholesale collapse.
To some extent, the world's problems are a result of American contagion. As home financing and credit tighten in response to the crisis that began in the U.S. subprime market, analysts worry that other countries could suffer the mortgage defaults and foreclosures that have afflicted California, Florida and other states.