--then again we can also look at housing starts:
There's a lot to this. Construction Spending for April was up 2.7%, and April existing home sales was up 5.77M after 5.36M for March. OK, so we all hate Obama; we need to keep our eyes open too.
People are now defaulting on those 1-2% mortgages before the reset.
Banks already own more houses than the private sector.
Commercial real estate loan defaults are quickening in their pace.
We can for get construction jobs coming back to public works too as most states, the federal goobermint are already in the red as they are too busy paying salaries that are higher than those in the private sector.
Goobermint is also giving away tons of money to illegals and the increasing number of unemployed.
Goobemints are mow paying out retirement benefits that were hedged with funds to pay those retirement accounts through large investment firms that bought CDS's, CDO's, derivatives, and repackaged liar loan mortgage backed securities provided by Fannie . Freddie...etc., etc.
Inflows at the state & local levels are down now too because of unemployment, reduced revenues from corporate income taxes, reduced sales taxes, etc.
The Great Goobermint Contrived Ponzi Scheme Credit Bubble pyramid is now crumbling.
I have a gut feeling that between the housing market, unemployment, rising state and city debt and the mess in Europe. Its becoming the perfect storm, one that will do far more damage to our economy in a double dip than the initial blast did to it the first go around.
Housing credit expired. Takes awhile for that to work out since it front loads demand. Not saying prices won’t go down some but its expected at this point just as employment numbers will look awful in Aug due to census working losing their jobs.
To keep up the facade of normalcy, they will have to roll out Stimulus #2. At what point do we just run out of $$?
--then again we can also look at housing starts:
There's a lot to this. Construction Spending for April was up 2.7%, and April existing home sales was up 5.77M after 5.36M for March. OK, so we all hate Obama; we need to keep our eyes open too.
“UNEXPECTED”.
LLS
Gov’t stimulus dries up in 2011-2012? I thought it dries up in 2010-2011!
The resources that were misallocated during the housing bubble need to be re-allocated to other sectors of (what's left of) the economy.
Part of the “double dip” may have more than one cause.
My son and his wife wanted to refi their house at the new low interest rate. This is a 200K house that they owe about 90K on. He was turned down by four banks.
The 5th (who gave the refi) couldn’t believe it. I couldn’t either.
The facts:
- It’s a 200K house that they owe about 90K on.
- They have ONE other bill - a 35K mini van that they owe about 6 more payments on.
- He makes over 100K a year.
- They’ve never been late on anything.
- Their credit score is over 800.
- No jail, no drugs, no... nothing.
- He owns other property outright, one other vehicle, too.
Does this make any sense?
Ya gotta keep an eye on PERSONAL INCOME. Nobody seems to be doing this.
The house price should be 3X the buyer’s income, PERIOD.
If this ratio does not work, you get all this smoke and mirrors BS and huge numbers of upside down mortgages.
Until incomes rise-FAAHGEDDABAAATIT!
As a renter who will be in the market for a home purchase in a year or two ... this doesn’t bother me :-D.
No.
In actuality we will be better off when the market corrects itself - restoring affordable housing to young couples without government handouts.
I have found this website to be a very useful source of information on the economy, gold, and silver.
http://goldismoney.info/forums/
