New York City Housing Bubble - 'The BIG Picture'

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Advice: Get Out Of Debt ASAP
2007-11-25 19:57:00
Housing History Sends Recession Warningby NYT - 11/24/07 snip:THE Federal Reserve Board forecast this week that there will be no recession in the United States in the foreseeable future. It says the gross domestic product will grow by as little as 1.6 percent in 2008, but is confident that growth will accelerate after that. That forecast ? the first formally issued by the Fed in line with its effort to be more transparent ? was released the same day that the Census Bureau reported a continued slowing of housing starts. The number of new homes being built is now little more than half the level of two years ago. If the Fed is right, and the economy does stay out of recession, with the unemployment rate barely rising at all, then it will be the first time ever that a housing slowdown this severe has not coincided with a recession. In fact, there has never been a slowdown of anything like this magnitude until after a recession was under way...A Time for Bold Thinking on Housingby ROBERT...
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Savage & Wall Street Experienced Housing Bust Epiphany In Dog Days Of Augus
2007-11-24 19:14:00
AP - Mortgage Slump Could Derail Economy MUST READUSA Today - 3Q07 home sales fall in 46 states; overall price dipsWSJ - Rising ARM Rates To Worsen Subprime MessWashington Post - Fannie & Freddie, No Position To Bailout Housing MarketFinanicial Times - On Wall St: Subprime flames lick at Freddie------Bloomberg - Global Derivatives Market Expands to $516 TrillionNYT - Banks Gone Wild With GreedPeter Schiff - Heads We Win, Tails You LoseEconomist Magazine - Banks & Brokers at gates of hell, misery spreadingNaked Capitalism - More Grim News from the Credit MarketsNaked Capitalism - Another CDO LiquidatesAlea - World?s First: UBS Triple A CPDO Blows UpMish's Global Economic Analysis - Fed's Liquidity Pump Runs DryFinancial Times - ECB set to pump cash into money marketsInternational Herald Tribune - New worry in Europe over credit crisisBloomberg - Europe Suspends Mortgage Bond Trading Between BanksNYT - Japanese Shift Cash Out of US Investments ABC Money UK - Gold buying picks up, do...
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Full Blown Systemic Crisis Brewing & USD Crashing
2007-11-22 01:27:00
Stand by for ?generalised systemic financial meltdown?by Financial Times - Full Article:"Gold is for optimists. I?m diversifying into canned goods." So said one reader on Felix Salmon?s Market Movers blog, in response to a post on crisis blogging. The trouble with being the leading harbinger of doom is that, rather like crack, you?re going to need to keep pushing the limits to keep achieving the same highs. So Salmon notes that the über-bears, no longer satisfied with dire predictions of a US recession, have now moved onto heralding a full-blown financial crisis. Only an all-out, systemic meltdown will do. The bear in question, Nouriel Roubini, has long been positioned firmly on the gloomy side of the outlook scale - but the past week?s batch of predictions has been ominous even by his own dark standards. In fact, they?re nigh on apolcalyptic. After all, back in March, Roubini was clear - the US landing would be hard, or at best, a growth recession. Enjoy that sentiment. That?s the ...
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We're Very Early In The Housing Bust And Financial Firm Writedowns
2007-11-21 01:19:00
At Subprime 'Survivors Conference' It's Too Early to Tell Who'll Surviveby Bloomberg - snip:They dubbed it "The Survivors' Conference." In early November, 2,000 people who handle asset- backed securities for a living crowded into a ballroom at the JW Marriott hotel in Orlando, Florida, just 3 miles from Disney World, to hear speaker after speaker explain why 2008 may be their worst year ever. The subprime crisis, which has claimed the jobs of three chief executive officers and prompted more than $45 billion in writedowns at the world's biggest banks, may end up spilling into 2009. "These events tend to become deeper and play out longer than most people initially expect," says Michael Mayo, an analyst who covers securities firms at Deutsche Bank AG in New York. "This is one of the slowest-moving train wrecks we've seen." The tumbling U.S. housing market will continue to inflict the damage. Mortgage-backed securities and collateralized debt obligations containing those secu...
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"NYC Foreclosures Will Impact Our Neighborhoods As A Whole"
2007-11-20 01:20:00
Comptroller: Many NYC Families Could Lose Homesby 1010WINS/AP - snips:New York City's comptroller says about 15,000 New York City families are at risk of losing their homes by the end of the year. The subprime mortgage crunch this year has driven the number of possible foreclosures higher. There were about 6,700 formal notices to start the foreclosure process in 2004. But this year, that number is on track to more than double... Comptroller William Thompson Jr. says his foreclosure prevention hotline, launched in April, has received 2,100 calls. He says about four out of 10 of the callers are from Queens. About 33 percent of them are from Brooklyn. Thompson says the foreclosures are a "crisis." The hotline number is 212-669-4600... "Every day my office hears yet another story about a family facing the loss of its home," Thompson said. "Foreclosure rates from subprime mortgages are reaching staggering rates. It’s estimated that approximately 15,000 families in the City are at ...
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Financial Humor On Current Crisis
2007-11-18 23:49:00
If you haven't seen it yet, enjoy.Broadcast on 10/14/2007John Fortune & John Bird on the South Bank show New York City Housing Bubble - The BIG Picture
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"Substantial Recession" In The Works
2007-11-17 02:19:00
Don't expect lower house prices just yetby NY Newsday - 11/16/07 snip:There's a 15.2-month supply of properties for sale on Long Island and in Queens, up from 11.6 a year ago, according to the October data released Tuesday by the Multiple Listing Service of Long Island, but decreases in the median price of homes sold are far from breathtaking. Houses languish, buyers wait for bottom prices, the mortgage crisis damages the economy and some sellers lower prices by as much as six figures -- so why hasn't the median price of closings dropped like a lead balloon?...Goldman Sees Subprime Cutting $2 Trillion in Lendingby Bloomberg - 11/16 snip:The slump in global credit markets may force banks, brokerages and hedge funds to cut lending by $2 trillion and trigger a "substantial recession'' in the U.S., according to Goldman Sachs Group Inc. Losses related to record home foreclosures using a "back- of-the-envelope" calculation may be as high as $400 billion for financial companies, Ja...
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NYC Sliding Deeper Into Black Hole Of Housing Recession
2007-11-16 01:14:00
Charting the Housing Spin by Motley Fool - snip: a must read...I'm here to help the NAR out, and by "help," I mean "illustrate, in the NAR's own words and figures, how the trends in its predictions makes its look downright ridiculous." Let's start with existing home-sales predictions...York City is sliding deeper into the black hole of the housing recession by NY Post - Full Article:New York City is sliding deeper into the black hole of the housing recession, with the number of foreclosures surging as much as 69% this Fall in some neighborhoods. Sen. Chuck Schumer (D-NY) said thousands of families here could wind up losing their homes by Christmas and become too deeply in debt to ever buy another home. Schumer said the latest data showed that Queens is suffering the highest foreclosure rate in the city, according to court actions filed in the city's courts to strip homes from delinquent mortgage payers. Queens foreclosures in the third quarter jumped 69% from a year ago. The bor...
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Lowballing at The Plaza
2007-11-15 00:51:00
Another Low-Baller at The Plaza by NY Observer - Full Article:We found another low price tag at The Plaza today, this one for $2,213,877.60. As we mentioned last week, it?s surprising to find these lower-cost units available in a building with so many $10-million (and up) condos. It somehow inspires a sense of relief. The buyer was listed as Kennedy Park Gallery USA Ltd, and calls to his or her (or their) lawyer did not turn up anymore information on the buyer's true identity. Since unit 508, the condo in question, is a residential unit, our guess would be that it?s an individual buying through a company name.New research on the causes of the housing boom and bustby Econbrowser - Graphic --->Foreclosures nearly double from year ago by Reuters - snip:Foreclosure filings rose in 77 of the largest 100 metropolitan areas from the prior quarter, according to the Irvine, California-based marketer of foreclosure properties. A broad credit and liquidity crisis during the third quarter exac...

Recession Looms Despite NY Stock Exchange Irrational Exuberance
2007-11-14 00:57:00
Mortgage Loan Losses Pose Risk of Systemic Shockby Bloomberg - 11/13/07 snips:There's a greater than 50 percent probability that the financial system "will come to a grinding halt'' because of losses from mortgages, Gregory Peters, head of credit strategy at Morgan Stanley, said. The world's biggest banks and securities firms have written down at least $45 billion in the value of assets linked to subprime mortgages for the third quarter after borrowers with poor credit histories failed to keep up with payments. Structured investment vehicles have defaulted on debt, forcing lenders including Legg Mason Inc. and SunTrust Banks Inc. to prop up their money-market funds to cushion them from possible losses. "You have the SIVs, you have the conduits, you have the money-market funds, you have future losses still in the dealer's balance sheet in the banks," Peters said in an interview in New York. "That's all toppling at once." The risk of systemic shock from the current subprime me...
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The Long Island Foreclosure Crisis Begins
2007-11-13 01:05:00
Home loan crisis threatens LI economy by NY Newsday - 11/12/07 snips:...Nearly a third of the 107,000 mortgages given to Long Island ers in 2006 were high-cost loans, which charge higher interest rates, fees and points and are far more likely to go into foreclosure than their conventional counterparts, a Newsday analysis of loan and foreclosure data has shown. This universe of loans includes those that are considered subprime -- more expensive mortgages given to borrowers with less than perfect credit. For many of those borrowers, these readily available loans were their only way to own a home. For banks, they were a rich source of fees. "That desperation to buy a home a couple of years ago translated into taking out what turned out to be literally toxic mortgages that seriously undermined" the borrowers' abilities to repay, said Nicolas Retsinas, the director of Harvard University's Joint Center for Housing Studies. Already across the region, home foreclosures are sharply on the r...
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Navigate The Falling Dollar - Catherine Austin Fitts
2007-11-11 21:09:00
You can visit her website and blog here Solari.For a more recent interview and information with Catherine Austin Fitts, she was a guest last evening on Coast to Coast Radio.Navigate The Falling Doll ar (Dec 2004 Video)Bio snip:Catherine Austin Fitts offers a unique perspective on the global financial system and on the political economy. Her background includes Managing Director and member of the Board of Wall Street investment bank Dillon Read & Co. Inc., Assistant Secretary of Housing - Federal Housing Commissioner in the first Bush Administration and President of Hamilton Securities Group, a Washington DC investment bank. Catherine has designed and closed over $25 billion of transactions and investments to-date, has led portfolio strategy for $300 billion of financial assets and liabilities and has participated in the private and public workout and turn around of billions in mortgage, real estate and banking fraud...-------Condo Fee Defaults Surge in Manhattan by NY Sun - 11/8/...
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Observations And Note To Readers
2007-11-10 18:48:00
As noted in my welcome message, the purpose of the 'NYC' Bubble BIG Picture blog is to provide a learning resource for reader benefit. The information compiled and provided here is volunteered time at no cost for a reason. The need for prudence with financial decisions within the current economic climate is clear. Mindless bickering serves no purpose.There is no bias on this site, but rather overwhelming evidence of a downtrend due to a 'loss of faith' globally in current U.S. inflationary monetary policy and financial instututions' integrity, and serious geo-political malaise. Multiple views on the economy at large and real estate pricing trends are available by link here if explored, watched by video, read and followed for any period of time. Absorb what is available before posting simplistic slanted articles already linked, or stats not reflective of fact and current trend. What I find most compelling on some ?comment? threads, despite the serious and escalating econom...
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Train Wreck on Wall Street and We?re Just Starting to Carry out the Bodies
2007-11-10 02:40:00
Fannie Mae Nine-Month Profit Falls 57% by Bloomberg - snips:Fannie Mae, the biggest source of money for U.S. home loans, said profit in the first nine months of the year fell 57% as mortgage defaults fueled an increase in credit losses... The company had been behind on its financial reporting because of an accounting overhaul. Net income for the first three quarters of 2007 dropped to $1.5 billion, or $1.17 a share, from $3.5 billion, or $3.16, a year earlier, the government-chartered company said in a Securities and Exchange Commission filing today. The filing, which brings the company up-to-date on its earnings reports, shows Fannie Mae hasn't been immune to the worst U.S. housing slump in 16 years. The company is grappling with the same loan delinquencies and foreclosures that led to losses at Citigroup Inc., Washington Mutual Inc. and Countrywide Financial Corp., and it was recently subpoenaed by New York Andrew Cuomo in an investigation into fraudulent home appraisals. "Fannie...
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We're Not In Kansas Anymore
2007-11-09 01:03:00
FAS 157 Could Cause Huge Write-offs by CFO.com - snip:It you think banks are writing off large amounts of assets now, wait until new accounting rules take effect this month...Toll Brothers sales plunge by CNN Money - snips:Luxury home builder Toll Brothers issued preliminary fourth-quarter results Thursday that showed a sharp drop in the number of new homes sold and an even deeper plunge in the average price of the home it was able to sell, as buyers canceled orders for its more expensive offerings. Toll Brothers did not report earnings, but said overall revenue was down 36 percent to $1.17 billion, in its fiscal fourth quarter, which ended Oct. 31, while the pipeline of new business fell even more sharply. Toll Brothers reported a sharp drop in sales and net new orders as buyers cancelled contracts to buy its more expensive homes... Net signed contracts, which reflects new contracts less canceled orders, fell 35 percent to 656 homes, while the value of those new contracts plunged...
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From Bad To Worse Is An Understatement Today
2007-11-08 02:06:00
Bonuses likely to shrink on Wall Street by Intl' Herald Tribune - snip:... Over all, bonuses are expected to be flat to down 15 percent, according to compensation experts and Wall Street executives... Wall Street bonuses, in turn, affect everything from Manhattan real estate to the prices of art, luxury goods and vacation homes. In 2005 and 2006, bonuses soared....Wall Street sinks on credit turmoil by Reuters - snip:...The DJ was down 360.92, or 2.64%, to end unofficially at 13,300.02. The S&P 500 Index was down 44.62, or 2.94%, at 1,475.65. The Nasdaq Composite Index was down 76.42, or 2.70%, at 2,748.76.Credit "Contagion" Spreads by AP - snip:The malaise in the mortgage market is starting to spread to credit-card and auto loans in what one analyst has dubbed "consumer credit contagion." It's an ominous warning signal for the economy. Many of the nation's big banks and credit-card companies have begun acknowledging that they are seeing a shift in consumer behavior, includi...
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Derivatives & Housing Conundrum: Too Much Supply And Too Little Demand
2007-11-07 01:13:00
2008 outlook: Housing by Money Magazine - 11/6/07 snips:Although home prices nationwide are down 4.2 percent from a year ago, "the worst is yet to come," says Joshua Shapiro, chief U.S. economist at consulting firm Maria Fiorini Ramirez. Just how bad will it get? According to Fiserv Lending Solutions, the median home price nationwide is expected to tumble 5.7 percent next year, which would make it the worst year for real estate in at least 40 years... The problem stems from that classic economic conundrum: too much supply and too little demand. As of September, some 4 million existing homes were languishing on the market - almost double the number three years ago - in addition to 523,000 new homes. Homes in foreclosure, projected to jump 25 percent next year to 1 million, further add to the backlog. Lenders, meanwhile, have dramatically tightened their borrowing requirements as defaults have risen, shrinking the pool of qualified buyers. If you were hoping to sell a home anytime...
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How Many Trillions Billions Millions Of Bad Debt?
2007-11-06 03:12:00
Markets fear banks have $1 trillion in toxic debt by Independent UK - 11/6/07 snip:A new phase in the credit crunch, one of ?$1 trillion losses? seems to be dawning. The crisis at Citigroup and renewed doubts about some of the world?s leading banks disquieted stock markets on both sides of the Atlantic yesterday, with the fractious mood set to continue...Foreclosure wave sweeps America by BBC - 11/5/07 snips:A wave of foreclosures and evictions is about to sweep the United States in the wake of the sub-prime mortgage lending crisis. This could destabilise the US housing market and may also lead to further turmoil in financial institutions, who collectively own $1 trillion worth of sub-prime debt. Cleveland, Ohio.... is the sub-prime capital of the United States. One in ten homes in the city is now vacant, and whole neighbourhoods have been blighted by foreclosed, vandalized and boarded-up homes... Cleveland's situation is not unique. All around the country, aid agencies report...
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Sunday School - Let's Cut Thru All The Boob Tube Economic BS
2007-11-05 11:09:00
Click Image to Play11/1/07CNN's Glen Beck on the Economy with guest Peter Schiff.What is really going on in the U.S. Economy?------11/5/07MarketWatch - US stock futures drop sharply amid credit turmoilFT - Hong Kong leads Asian stock fallReuters - World shares fall as Citi reignites credit concerns WSJ - Why Citi Struggles to Tally LossesBloomberg - Citi's Profit Breaks Down, Prince Exits, Writedowns IncreaseEconomist - Roller coaster, Riding out the subprime crisisFT - Why banks are only starting to uncover subprime lossesBloomberg - Subprime Contagion May Claim 10-Year Treasuries NextReuters - Pakistan police use teargas against lawyers New York City Housing Bubble - The BIG Picture
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Level 3 Accounting Storm Apporaches Wall Street - NY Housing Market To Suff
2007-11-04 16:42:00
Level 3 storm about to hit Wall Street by Asia Times - 11/3/07 snip:There's a mystery on Wall Street. Merrill Lynch wrote off $8.4 billion in its subprime mortgage business, a figure revised up from $4.9 billion, yet Goldman Sachs reported an excellent quarter and didn't feel the need for any write-offs. The real secret of the difference is likely to be in the details of their accounting, and in particular in the murky world, shortly to be revealed, of their "Level 3" asset portfolios... We may be about to find out. From November 15, we will have a new tool for figuring out how much toxic waste is in investment banks' balance sheets. The new US accounting rule SFAS157 requires banks to divide their tradable assets into three "levels" according to how easy it is to get a market price for them. Level 1 assets have quoted prices in active markets. At the other extreme Level 3 assets have only unobservable inputs to measure value and are thus valued by reference to the banks' own ...
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Bankers & Feds Have Their Heads In The Sand
2007-11-03 00:07:00
The motion has been made and seconded that we stick our heads in the sand ->Citigroup's Prince Plans To Resignby WSJ - 11/2/07 snip:Charles Prince, the beleaguered chief executive of Citigroup Inc., is planning to resign at a board meeting on Sunday, according to people familiar with the situation. The move caps a four-year tenure as CEO for Mr. Prince, a longtime lawyer who took over the reins from Sanford Weill, who built Citigroup into a financial colossus...LI foreclosure rate climbs by double digitsby NY Newsday - 11/2/07 snip:The rate of foreclosure filings in Nassau and Suffolk counties rose by double digits in the third quarter, according to a report issued yesterday. Nassau saw 1,241 foreclosure filings from July to September, an increase of 27.4 percent from the previous three months, according to RealtyTrac, an online marketplace for foreclosure properties. Suffolk, meanwhile, had 1,080 foreclosure notices, up 14.4 percent from the prior quarter. RealtyTrac's numbers a...
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3Q07 Foreclosure Filings - One For Every 196 Households
2007-11-02 02:51:00
U.S. Home Foreclosure s Doubled in the Third Quarterby Bloomberg - 11/1/07 snips:U.S. home foreclosures doubled in the third quarter from a year earlier as subprime borrowers failed to make higher payments on adjustable-rate mortgages, RealtyTrac Inc. said. There were 635,159 foreclosure filings in the quarter, or one for every 196 households, including default notices, auction notices and bank repossessions,... "Given the number of loans due to reset through the middle of 2008 and the continuing weakness in home sales, we would expect foreclosure activity to remain high and even increase over the next year in many markets,"... RealtyTrac has a database of more than 1 million properties. The jump in foreclosures is exacerbating the U.S. housing recession by increasing the number of homes on the market as sales and prices decline. Unsold residential properties in September rose to the highest on record, the National Association of Realtors said last week. Foreclosure filings in th...
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One Day Americans Will Wake Up, Screaming
2007-11-01 00:55:00
They dreamt the money would keep coming but one dayAmericans could wake up screaming by Telegraph UK - 10/30/07 snip:Wheter or not there is a recession, the US is no longer first choice for investors and the dollar could fall to a point where it is nothing special ...Home Prices Are Down, and So Is Confidenceby NYT - 10/30/07 snip:...Home prices in the New York City area fell 0.8% in August, and are down 3.8% for the year ended in August... Meanwhile, an October survey of consumers showed confidence in the economy at the lowest level in two years. The confidence index fell to 95.6 from 99.5 in September, which was also revised downward, according to the Conference Board, a private research firm...Home price drop worst since June 1991by Reuters - 10/30/07 snips:...S&P said its composite month-over-month index of 10 major metropolitan areas declined 0.8% in August to 214.35, for a 5% year-over-year drop, S&P said in a statement on Tuesday... The 10 city index fell 0.5% in July...
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New York City On The Verge Of Getting Real
2007-11-01 00:23:00
New York City , State Budget Outlooks Dim as Wall Street Faltersby Bloomberg - 10/31/07 snips:New York state and city each predicted widening budget shortfalls as Wall Street profits plunge and the real estate market cools. Mayor Michael Bloomberg yesterday ordered department heads to freeze hiring and cut spending this year and next in anticipation of less revenue. State financial officials reduced their estimates for personal tax collections, while state Budget Director Paul Francis said he plans to hold spending to no more than the growth in personal income. "People are starting to get real,'' said Charles Brecher, research director for the Citizens Budget Commission, a non- profit, business-funded fiscal monitoring group... Housing prices in the New York City metropolitan area may start to drop beginning in the current quarter and continue falling 1% to 7% per quarter through 2008, Mark Zandi, co-founder of Moody's Economy.com, an economic forecasting agency and unit of Moody...
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SIVitis
2007-10-30 00:40:00
Citigroup: 'Gimme shelter' by Fortune - 10/29/07 snip:This may sound silly, but let me ask you a question. Let's say that I maxed out my credit at Citigroup to speculate on a house whose market price is now less than what I paid. Citi wants its money, but instead I say, "Sorry, the house is selling for less than its true value. As soon as it sells for what it should, I'll send you a check." What do you think Citi's reaction would be? How about "Sir, where should I send the repo man?" Well, folks, Citi (Charts, Fortune 500) seems to have put itself in just such a fix by borrowing lots of money to buy assets that have dropped in market value. But instead of summoning the repo (as in repossession) man, some of the world's biggest hitters are trying to set up a huge fund to buy time for Citi and some other institutions with similar problems. The idea is to set up a $100 billion "master liquidity enhancement conduit" to take some of the $80 billion of suspect securities off Citi's...

NYCbubble Fan Mail
2007-10-28 16:19:00
I am posting the email below with permission from the Author. Even if for some miracle NYmetro did not experience a substantial correction in home prices (many local areas already are), a minor one still puts this person in the drivers seat to snatch up a great deal down the road. Debt free, no mortgage, good investments. A rarity.---------From: XXXSent: Saturday, October 27, 2007 9:21 AMTo: brooklynchic@verizon.netSubject: The siteI think you guys are getting better and better. It’s as if you guys become crisper and more clear as the chaos increases. I really enjoy the site and can’t wait to see it each day.I told one of my college pals in Manhattan that you guys are the Drudge Report of the Housing market. He does something, I think he is the boss -- here in the US -- for a huge XXX bank (We always talk about kids, baseball and politics – one of his employees told me he was important) Anyway, he is now addicted, and tells me that he wished he had seen it sooner so he didn...
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What Is In Your Wallet? Gold, Or Depreciating USD Assets & Home Equity
2007-10-27 17:36:00
How is your down payment kitty doing?See my post from Dec 28, 2006 - Double Your Down-Payment Kitty Next Year - 1 Keeping Gold At The Top by Jim SinclairGold and Dollar Market Summary by Dan NorciniHourly Action In Gold From Trader Dan by Dan NorciniSee articles for PDF charts and more......Strong sustained buying has the bullion banks on the defense this AM. Gold blew through overhead resistance as if it did not exist. The price action will attract further momentum buying and perhaps allow a test of the $800 level soon. As I predicted more than 3 years ago, in the face of continued top calling by novices looking to terrify the gold community every single time we had a speculative long build up - open interest has indeed surpassed the half million mark. The top callers of three weeks ago should be now be utterly and completely humiliated and if they had any decency in them, would simply go away and attempt to recover what is left of their shattered reputations. Those who have li...
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House Prices Decline Slowly - A Process Not An Event
2007-10-26 01:22:00
Reports Suggest Broader Losses From MortgagesNYT - 10/25/07 snips:Every time economists and Wall Street executives think they have acknowledged the full extent of the losses from the meltdown in real estate mortgages, more bad news turns up... The loss in total real estate wealth is expected to range from $2 trillion to $4 trillion, depending on how far home prices fall, according to several economists... Experts caution that these estimates are preliminary and the total costs could get bigger still. They also note that the loss of real estate wealth could prove more damaging for the general public than falling stock values because more American families own homes than own stock... Of course, many people who bought their houses several years ago are still ahead financially... Those who bought close to the peak stand to lose the most if they have to sell in the near future... In a new report to be issued today, the Joint Economic Committee of Congress predicts about 2 million foreclo...
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The Housing Market IS Toast - Economy To Follow
2007-10-25 02:04:00
Folks, the news is really ugly today, and unfortunately the worse is yet to unfold over the next 2yrs. References to horrible data are just too numerous to list. So I'm keeping it short with only a few articles that I feel touch on the most important points... plunging home sales, rising inventory, a tanking USD, more layoffs, major financial firms loosing their shirts, and Turkey's incursion into Northern Iraq...U.S. Economy : September Existing Home Sales Plunge 8% by Bloomberg - 10/24/07 snips:The U.S. housing industry plunged deeper into recession last month as the August credit-market collapse made it harder for buyers to obtain loans. Sales of previously owned homes fell 8 percent in September to an annual rate of 5.04 million, the fewest since records began in 1999, the National Association of Realtors said in Washington. The decline was almost twice as steep as economists forecast, while the median price dropped the most in almost a year... "The worst isn't behind us, t...
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Layoff Bloodbath At Wall Street Financial Firms Continues
2007-10-24 01:01:00
A Subprime Outlook for the Global Economy by Stephen Roach - 10/23/07 snips:...This will come as a surprise to policy makers and investors, alike-most of who were counting on boom times to continue. At work is yet another post-bubble adjustment in the world's largest economy - this time, the bursting of America's massive property bubble. The subprime fiasco is the tip of a much larger iceberg - an asset-dependent American consumer who has gone on the biggest spending binge in the modern history of the global economy. Seven years ago, the bursting of the dot-com bubble triggered a collapse in business capital spending that took the US and global economy into a mild recession. This time, post-bubble adjustments seem likely to hit US consumption, which at 72% of GDP, is more than five times the share the capital spending sector was seven years ago. This is a much bigger problem... Subprime spillovers have only just begun to play out - as has the debate this crisis has spawned. G...
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