Home prices tumbled in 3rd quarter
Is this the end of the road for BUSH DEBT ECONOMICS?
MSNBC-Standard & Poor’s: Decline was biggest since index started in 1987
U.S. home prices fell 4.5 percent in the third quarter from a year earlier, the sharpest drop since Standard & Poor’s began its nationwide housing index in 1987 and another sign that the housing slump is far from over, the research group said Tuesday.
The index also showed that prices fell 1.7 percent from the previous three-month period, the largest quarter-to-quarter decline in the index’s history.
The S&P/Case-Schiller quarterly index tracks prices of existing single-family homes across the nation compared with a year earlier.
No. It is a housing slump John…not the end of the world you so desperately want to happen.
Why do you revel in bad news John? Do you spend every waking moment hoping for something to cross your path so you can blame Bush? Must be a pitiful existence.
Bart
The debt is good GOPERS like you are why 08 will be a bust!
John,
How will 08 be a bust…you mean just like 06 and 07, both years you also said would be busts? LMAO!
This report while significant compares this year’s home prices to last year…a year in which the housing market was topping out and way over valued. A correction was due.
Despite the news, ADIA invested $7.5B in your old company Citigroup, the stock market reacted by rising over 200 points and the retail market experienced an uptick from last year’s first holiday shopping weekend. It’s not hard to find good news John if one seeks to find it.
Again I ask, why do you revel in bad news when there is so much to be optimistic about in this country?
bb,
Keep talking, bad breath and all.
It’s all good. Convince yourself.
MD
Housing slump . . .
or
“the sharpest drop since Standard & Poor’s began its nationwide housing index in 1987.”
.
Consider the sources.
Then, take your pick.
06 and 07 weren’t great. The DOW lost money for many investors who had to buy the DOW in other currencies converted to dollars.
The only thing that made 06 and 07 look great was borrowing money to make it look better.
Government spending accounted for a good portion of GDP including much of the “private sector,” which got its salaries to buy good with, from government contracts, subsidies, grants, and government jobs. Then add that inflation is underreported and GDP wasn’t even as good as they report.
We have a “smoke and mirrors” prosperity. That said, the Democrats won’t do any better and may be worse in the long run, though in the short run, they may look better.
Remember, they are the party that was in control for 40 years and are calling for the same policies they used during that 40 years that wrecked the nation as much as what the GOP has been doing when it was in control.
But, the people demanding more government are the real problem and they show no signs of changing either.
It is because of that last factor, BB, that I am very pessimistic about the future once the boomers stop paying in payroll taxes and start drawing from the trust funds.
In the article Mad Dog posted on Reagan, he spelled out why the GOP is bad. That doesn’t excuse the democrats but, it doesn’t remove the blame from the GOP either. In the book, “America: Running on Empty,” by Peterson, details why both parties are bad for America.
Tax cuts do work. Nation after nation is using them but, they are also nations where the people are making sacrifices while businesses come to their nations for those lower taxes. They also have simple tax codes, reformed entitlements, deregulation and decentralization in some cases, and other things that mean the individuals are shouldering the burden of a nation with low taxes on wealth and business.
Reagan and other GOP tax cut fans have never demanded the reforms needed first, before the tax cuts can work effectively.
All we do is continue to “spend our way to prosperity,” when in reality we are building such a massive debt and unfunded liability that we have the Comptroller General touring the nation warning the people our nation is headed for a massive crisis and loss of our standard of living.
The assumption the growth from tax cuts would increase the economy is a myth in the U.S. (not in other nations). It is a myth here because we don’t demand the sacrifices needed for a transition and we don’t demand them because the voters wouldn’t stand for them
With 52% of the people now getting some kind of funding from the government, grants, government contracts (esp defense), subsidies, welfare, S.S., Medicare/Medicaid, it is no wonder they want more, not less and not want to pay for them either.
“Why do you revel in bad news John?”
It’s not “reveling” you boob.
It’s called facing reality.
In all fairness to Bush… it’s not a Bush-thing. Debt economics is an American thing.
Now go stick your head back in the sand.
100% correct Capt.
quote:
Note the left side of the chart – - showing the household debt ratio in the 1960s and early 1970s held steady at about 53% of national income – which means household debt was not growing faster than growth of the total economy.
We recall from the above charts that prior to 1970 family incomes were rising – but thereafter growth stopped for the following 25+ years.
The left chart shows thereafter the debt ratio started upward, slowly – then exploded like a rocket – to today’s historic record high debt ratios (at 122% of national income, or $11.8 trillion – a debt increase of 9% over prior year).
As household debt ratios increased 90% faster than growth of the economy since the late 1960s when real median family incomes stopped rising, such suggests real equity & savings have not been the driving force of so-called economic growth – - it has been debt driven.
Family Income Report
Hmmm? Link didn’t come out
Family Income Report
or if that still doesn’t work
http://tinyurl.com/29ou6u
Part of the reason we face more problems with home owners getting loans has to do with the government, too.
quote:
Government-sponsored entity Freddie Mac spooked the markets last week when it announced it must raise capital amid rising losses. This process will involve some combination of the unpleasant choices listed above. It’s not good news for housing market finance because it means Freddie will be less aggressive in buying mortgages from banks – just at the time when Congress has been pushing to allow Freddie to become more aggressive.
Washington, D.C., politicians will eventually concoct some type of tax- and inflation-financed housing bailout, but after last week’s news from Freddie Mac, it will take longer than expected. Financial stocks are oversold, and may be due for a bounce, but they are not out of the woods yet.
The Rude Awakening
We have gotten so used to easy credit that having to put 10-20% down just isn’t feasible for most home-buyers. We had 20,000 illegal immigrants get loans in just the Denver area on nothing but a TID number. Now, those loans are drying up and we have over 1 million homes in foreclosure and over 1 million more expected to be foreclosed on adding to the glut of homes that need to be sold.
As the population grows, this will be sorted out but not quickly.
Due to home markets and the financial problems, over 250,000 workers are expected to be laid off just in those sectors. Add the hundreds of thousands of other workers that are impacted by slowdowns in consumption by those layoffs and other layoffs and you see why Wall St. and the Fed is so concerned.
It is also why each day, it looks more and more like another Fed rate cut is coming which will weaken the dollar if they do causing higher import prices.
GREAT POST JAN!!!! The links are great on post 9 all should read!!!!