I think it could be the beginning of the end of the so called "american dream" thanks to the criminals who run america, who work for a foreign nation that is based on terrorism, hatred and racism.
http://www.forbes.com/markets/feeds/afx/20...afx2988491.html
The housing market has been the main reason behind the US growth spurt over the last couple of years and any suggestion that it is in trouble stokes up concerns about the economic outlook and the likely path of US interest rates.
Full Version: American Economy will enter a deep recession
QUOTE (galloway @ Sep 1 2006, 03:19 PM) 
I think it could be the beginning of the end of the so called "american dream" thanks to the criminals who run america, who work for a foreign nation that is based on terrorism, hatred and racism.
http://www.forbes.com/markets/feeds/afx/20...afx2988491.html
The housing market has been the main reason behind the US growth spurt over the last couple of years and any suggestion that it is in trouble stokes up concerns about the economic outlook and the likely path of US interest rates.
http://www.forbes.com/markets/feeds/afx/20...afx2988491.html
The housing market has been the main reason behind the US growth spurt over the last couple of years and any suggestion that it is in trouble stokes up concerns about the economic outlook and the likely path of US interest rates.
The sky is not falling chicken little.
"GDP growth will slow to 2.0 pct next year" do you understand what that means? We had less than 2% growth in 2001 and 2002 and the "end" did not come. MARK
dixon, that's not the way I read the quote. I understand that their forecast for the coming year had been 2%, but if the real estate market is going down as fast as 7% in one month, all bets are off on that GDP estimate.
If the source was less reliable than Forbe's, or their source in turn was just a guesser, I'd be less concerned. But if the real estate people are announcing a 7% slide NATIONALLY, perhaps the sky is falling by at least 7%. In one month, in the middle of the summer!
Chicken Little can't be wrong 100% of the time. We've been in a r.e. boom for a very long time, and the dips over the last 30 or 70 years were pretty well glossed over. My buddy from Mass. says that for three years in a row, home prices in Boston slid 10% every year. Oh, they've recovered and are booming again, but who how many Americans could afford a three year slide and a five year recovery or ten years (allowing for inflation) to get back to where they are now, in 2006? Texas in the 1980's got hit just as hard; some condos lost half their value and took over ten years or 15 years to recover.
For far too many Americans, fixed pensions are gone, 401(k) funds won't save them, and real estate equity is by far their largest asset.
How many Americans have ARM's, which might greatly increase their interest rate, and their monthly payments? How many might end up with negative amortization or negative equity?
If the source was less reliable than Forbe's, or their source in turn was just a guesser, I'd be less concerned. But if the real estate people are announcing a 7% slide NATIONALLY, perhaps the sky is falling by at least 7%. In one month, in the middle of the summer!
Chicken Little can't be wrong 100% of the time. We've been in a r.e. boom for a very long time, and the dips over the last 30 or 70 years were pretty well glossed over. My buddy from Mass. says that for three years in a row, home prices in Boston slid 10% every year. Oh, they've recovered and are booming again, but who how many Americans could afford a three year slide and a five year recovery or ten years (allowing for inflation) to get back to where they are now, in 2006? Texas in the 1980's got hit just as hard; some condos lost half their value and took over ten years or 15 years to recover.
For far too many Americans, fixed pensions are gone, 401(k) funds won't save them, and real estate equity is by far their largest asset.
How many Americans have ARM's, which might greatly increase their interest rate, and their monthly payments? How many might end up with negative amortization or negative equity?
QUOTE (galloway @ Sep 2 2006, 05:19 AM)
I think it could be the beginning of the end of the so called "american dream" thanks to the criminals who run america, who work for a foreign nation that is based on terrorism, hatred and racism.
http://www.forbes.com/markets/feeds/afx/20...afx2988491.html
The housing market has been the main reason behind the US growth spurt over the last couple of years and any suggestion that it is in trouble stokes up concerns about the economic outlook and the likely path of US interest rates.
http://www.forbes.com/markets/feeds/afx/20...afx2988491.html
The housing market has been the main reason behind the US growth spurt over the last couple of years and any suggestion that it is in trouble stokes up concerns about the economic outlook and the likely path of US interest rates.
Clearly some warning signs have been tranmitted perhaps an arrange visit to Dr. Phil's place is in order for Sir Moonbattery Galloway MP. DH and SH.
Dreams of a man presuming he is in boat all by himself, unaware that if the boat sinks, as he desires, he sinks with it...
As Below, the True Euro eunuch Mantra; bred of cynicism and floated on a sea of negativity...
QUOTE (Fit2BThaied @ Sep 1 2006, 11:19 PM)
dixon, that's not the way I read the quote. I understand that their forecast for the coming year had been 2%, but if the real estate market is going down as fast as 7% in one month, all bets are off on that GDP estimate.
Soooo why did the 7% drop in one month, 3 years ago, end up being the beginning of the boom, but the same 7% drop now is going to be the "beginning of the end"? Why didnt negative growth in 2001 mark the beginning of the end, but something less than 2% growth now, will bring the end?
Chicken little is always wrong but Im always thankful for the buying opportunities he creates. MARK
Housing decline is GOOD NEWS for new buyers!
dixon, you may be right, and I may be a little bit chicken. Are housing slumps like 7% in the summer selling season, normal? Is the market that volatile, month to month?
Actually, there weren't many clouds in the sky today, which is great for the rainy season after all our floods.
Yes, if you're a buyer who isn't an owner who needs to pay mortgages, a buyer's market is great. And if the values only burp once, no more than 10%, and quickly rebound, the great American money machine is back on track.
However, with geometric progessions of 9% annual price increases, when wages are only climbing at 4% or less, prices of homes will eventually be out of the range of buyers.
For example, in a 20 year period, compounding between 4% and 9% makes the house payment take up 250% of the portion of the budget it formerly took. Are we there yet? I realize the scheme is to roll over your equity into the next house, but still...
Actually, there weren't many clouds in the sky today, which is great for the rainy season after all our floods.
Yes, if you're a buyer who isn't an owner who needs to pay mortgages, a buyer's market is great. And if the values only burp once, no more than 10%, and quickly rebound, the great American money machine is back on track.
However, with geometric progessions of 9% annual price increases, when wages are only climbing at 4% or less, prices of homes will eventually be out of the range of buyers.
For example, in a 20 year period, compounding between 4% and 9% makes the house payment take up 250% of the portion of the budget it formerly took. Are we there yet? I realize the scheme is to roll over your equity into the next house, but still...
This is a "lo-fi" version of our main content. To view the full version with more information, formatting and images, please click here.