Re: consumption is plummeting, home prices in real terms are down 24%, yet the freidmonites desperately cling to their failed polices, and discredited assumptions, asset deflation may be setting in:U.S. House Price Decline Could Be Worse than Great Depress

Video61@tcq.net wrote:

>
http://finance.yahoo.com/tech-ticker/article/53094/U.S.-House-Price-Decline-Could-Be-Wor
se-than-Great-Depression?tickers=%5Egspc,fre,fnm

> U.S. House Price Decline Could Be Worse than Great Depression
> Posted Sep 04, 2008 01:36pm EDT by Henry Blodget in Newsmakers,
> Recession
> Related: ^GSPC, FRE, FNM

> Eight years ago, Yale superstar professor

Wota terminal fuckwit journo.

> and MacroMarkets chief economist Robert Shiller famously called
> the top of the stock market in his book Irrational Exuberance.

Like hell he did.

> Then, a year before the housing bubble peaked, he
predicted the colossal bust we are now experiencing.

But didnt even mention the cause of it, the sub prime fiasco.

> If you recognize Shiller's name, it's because the
> Standard & Poor's/Case-Shiller home price indexes,

And we have already seen how completely worthless S&P's ratings are.

> which he developed with Wellesley College economist Karl Case, have
> become the nation's most authoritative source for home price trends.

Wrong again.

> In part one of my one-on-one with Shiller,

Who's always been a flagrantly self promoting media tart.

You took the bait hook line and sinker.

> we discuss the grim outlook for U.S. housing, which he
> tackles in-depth in his new book The Subprime Solution.

So he is just promoting his new book, and you are too stupid to even notice.

> Highlights of our first discussion include:
> . Home price declines are already approaching those in the
> Great Depression, when they plunged 30%t during the 1930s.

And we havent seen anything like the effect on unemployment we saw then.

> With prices already down almost 20%, it's not a stretch
> to think we might exceed that drop this time around.

Only a problem for the suckers so stupid to have grossly overcommitted
and lied about their circumstances to get the loan and who lose their jobs.

> . There are about 10 million homeowners whose debt is higher than their home value,

And the stupid US system was stupid enough to do most
of those non recourse, so they can just hand the keys back.

> which has broad implications for how Americans feel about their wealth
> and spending habits (read: more pressure on consumer spending).

Tough titty for them.

> . The current hopeful consensus -- that house prices will bottom
> soon and then begin to recover -- is most likely a dream.

Bet it aint. The economy is doing surprisingly well considering
and the fed has done a decent job fixing the liquidity problem
and ensuring that the worst of the banks dont affect anyone else.

> Housing markets don't usually have "V-shaped" recoveries.

Irrelevant what the shape of the recovery is.

We survived the S&L fiasco and will survive the sub prime fiasco too.

> And even if house prices stabilize in nominal terms, after adjusting
> for inflation, most homeowners will continue to lose money.

Most homeowners STILL arent losing money on what they paid for the property, liar.
[ Auf dieses Posting antworten ]