The median price for all existing homes sold last month fell 9.0 percent from year ago levels, from $210,500 to $191,600, and further price reductions are expected in the year ahead. As the economy weakens further and credit continues to tighten, home price declines could accelerate.
The market is doing what markets are supposed to do - price discovery.
The supply is still at historical highs and the foreclosure rate just increased 71% in 1 year and we're not even at the peak of prime ARM resets.
I don't see how one can expect to have housing prices stabilize without increasing wages, job security for the US working/middle class.
And frankly, Democrats (and Republicans) are pursuing their corporate conceived/neoliberal globalization agenda that just isn't going to stop that....so unless the Japanese rush in (and China too) and buy up the supply....
I don't see the actual prices stabilizing anytime soon.
I mean the election was over a long time ago. Hillary lost and it was a bummer for promoting more Progressive/Populist policies was assuredly lost in the fray.
I've blown it off assuming we will have complete 1 party rule (as if the 2 party system gives up that much of a choice).
But, we have the lame duck and I hate to tell everyone this but it is Democratic leadership that has first up....not dealing with US middle class jobs, the financial crisis, setting up a HOLC or any such thing...
nope, they are promising to pass more corporate lobbyists demands, heavy focus on guest worker Visas/immigration.
So, expect a disaster...charming, let's do a sudden spike up in the domestic labor supply...ignoring our manufacturing hemorrhage while even more manufacturing/production jobs are on life support.... and frankly this is by Democrats, in the lame duck.
They might wait until the new session but it depends on how much they can guarantee a US worker sell out by the new Democratic sweep into Congress.
I'm not kidding, these are the internal agenda reports.
I will try to blog some more on what the economic agenda ought to be in 2009 -- what are the highest priorities, or easiest good fixes to pass.
The US desparately needs its infrastructure repaired, the middle/working classes deparately need jobs, and banks need to be recapitalized with loans that they can be confident will be paid back on a fiscally prudent basis.
Ah, ok...To me what is missing in this entire big picture is the bottom line that the middle class cannot prosper, commit and pay for 30 yr. mortgages without good, stable jobs...
I mean the entire idiocy of thinking they can import home buyers is astounding...if the economy is contracting and there are less jobs....where do they think those jobs will go to if they import people on employer based immigration vehicles with a contracting job market?
It's like more fictional economy math where 1-3 = 6.
Then green jobs! Drives me nuts, of course those jobs can be offshore outsourced and they already are....that claim is just an absurdity without major policy changes in corporate tax code, trade agreements, worker protections in the US....
It's like filling up a sieve and pretending water isn't running out the bottom.
I mean have you even heard on CNBC they mention manufacturing? It's like the entire financial mindset is all about credit, financial instruments, debt, fictional money...
and if someone is talking about a production economy, it's like it's out of vogue...
I saw more concern yesterday on poor ole China going from 10% yearly GDP growth to 9% GDP growth than the reality of the US GDP contracting or the middle class shrinking.
What are these people thinking because that switch...when China overtakes the U.S. as the world leading economy...
that just ain't gonna be pretty across the board for everyone.
I mean talk about behavioral economics, it's like they have blinders on to some of these fundamentals.
Try posting a link in a comment on this site, I'm sure he'll appreciate the rant considering what he named his entire blog site. He lists us in his blog roll and I think he's a nice guy too. One of the economics blogger pioneers, breaking through the economic elitism when we had Bob Woodward writing books like Maestro on Greenspan and idiotorial texts like Fried Green Thomas Friedman Flat brain flat world.
I'm not calling a bottom at all. Just suggesting that we may be more than 50% of the way there. This is the first inflection point -- YoY sales increase -- along the way there.
Don't know if they take submissions though. You probably can tell that I wasn't very technical this time in my entry. The fact remains, that what we had before Congress yesterday was really a battle of philosophies, and the casualties were the American tax payer. Human nature must be taken into account, that is why the Soviets failed, and their mirror opposites on the otherside of the spectrum failed as well.
If one follows their reasoning then we should have no laws because of course bad behavior is not in the interest of society or the individual and the market in this case society will simply not reward such inefficient, non-cooperative behavior. Ha, ha.
I'm a huge math head on financial/economics systems, but not recognizing basic human and sociological nature (the crowd) is living in some pipe dream world. Isn't the road to hell paved by idealistic philosophies?
I have to agree with Jim Rogers on his live by the sword, die by the sword, at least he is consistent, whereas Greenspan and these other Neo-con/liber/ative/als simply want a rigged game for their new uber-elite class.
What a surprise since that's yet another sociological aspect that the subclass protects and secures it's own.
Nice rant on Greenspan, I'll bet the blog The Mess That Greenspan Made would enjoy this one.
Bottom line is houses are still plain too expensive for most wages and while our lovely Congress seems to think that importing workers will help, that will only depress wages, displace US workers further...causing more defaults and foreclosures.
But somewhat understandable. In a society which spends years telling you that lazy people shouldn't be allowed to live, that family loyalty isn't important, that you can kill off the next generation if the sudden appearance of a pregnancy blows a hole in your future plans for yourself, then why not, when those future plans have been blown up by the greed of Wall Street and there is no future you can see that is good, at least relieve the human race of one more mouth to feed on welfare?
In other words, the result of the worst myths of the right and left wings in this country, in hard times, WILL be suicide among those who believe those myths.
Markets aren't just a tool, they are an INVENTION. Like the difference between and Adze (a sharp pointy rock) and an Axe (a forged head of metal with a stick attached for a handle).
Not only should markets serve man, they need to be *designed* to serve man, and to leave chaos and lying and greed as features of the system is as silly as failing to design the Tacoma Narrows Bridge for windflow patterns.
I just watched a local news program that said the calls to the suicide hotline are up 54%.
Folks, insurance policies do not pay on a suicide.
I don't know why people think anyone would want this but bottom line, you off yourself, your family gets nothing and is now in incredible grief.
I so wish people could rise above the moment and realize that this too shall pass and more importantly the destruction of the middle class, upon which more and more people are getting trapped by...is simply not their fault.
Who blame Ralph for Bush. The reason is ....NAFTA. Gore is the one who pushed for bad trade deals and the fact that race was even close really was his fault and Ralph was just doing his thing.
I also blame the ballot designer on that butterfly ballot.
I'm assuredly in the minority with that but if we didn't have guys like Ralph around, pushing for real policy change and sputtering out facts right and left we'd be in worse shape than we are.
that I'm a presidential elector for Nader in my home state?
And I'll tell you that it took me a while to punch his name on the voting machine, but I wrote Ralph in. It's a damn shame that Nader wasn't invited to the debates.
McCain agreed to debate him, but Obama refused to let Nader into the 3 debates.
He speaks truth so often and this time he specifically mentioned the use of the H-1B Visa to labor arbitrage and displace Professional workers! That's awesome because both Obama and McCain have promised to sell out Professional workers, possibly in the lame duck.
The supply is still at historical highs and the foreclosure rate just increased 71% in 1 year and we're not even at the peak of prime ARM resets.
I don't see how one can expect to have housing prices stabilize without increasing wages, job security for the US working/middle class.
And frankly, Democrats (and Republicans) are pursuing their corporate conceived/neoliberal globalization agenda that just isn't going to stop that....so unless the Japanese rush in (and China too) and buy up the supply....
I don't see the actual prices stabilizing anytime soon.
See this neat graph by Tim Iacono of The Mess that Greenspan Made.
Again, this doesn't mean we are anywhere near the end. But it does mean maybe we can at least begin to see the beginning of the end.
I mean the election was over a long time ago. Hillary lost and it was a bummer for promoting more Progressive/Populist policies was assuredly lost in the fray.
I've blown it off assuming we will have complete 1 party rule (as if the 2 party system gives up that much of a choice).
But, we have the lame duck and I hate to tell everyone this but it is Democratic leadership that has first up....not dealing with US middle class jobs, the financial crisis, setting up a HOLC or any such thing...
nope, they are promising to pass more corporate lobbyists demands, heavy focus on guest worker Visas/immigration.
So, expect a disaster...charming, let's do a sudden spike up in the domestic labor supply...ignoring our manufacturing hemorrhage while even more manufacturing/production jobs are on life support.... and frankly this is by Democrats, in the lame duck.
They might wait until the new session but it depends on how much they can guarantee a US worker sell out by the new Democratic sweep into Congress.
I'm not kidding, these are the internal agenda reports.
For an alternative store of wealth.
I will try to blog some more on what the economic agenda ought to be in 2009 -- what are the highest priorities, or easiest good fixes to pass.
The US desparately needs its infrastructure repaired, the middle/working classes deparately need jobs, and banks need to be recapitalized with loans that they can be confident will be paid back on a fiscally prudent basis.
I see the makings of an economic program here.
Ah, ok...To me what is missing in this entire big picture is the bottom line that the middle class cannot prosper, commit and pay for 30 yr. mortgages without good, stable jobs...
I mean the entire idiocy of thinking they can import home buyers is astounding...if the economy is contracting and there are less jobs....where do they think those jobs will go to if they import people on employer based immigration vehicles with a contracting job market?
It's like more fictional economy math where 1-3 = 6.
Then green jobs! Drives me nuts, of course those jobs can be offshore outsourced and they already are....that claim is just an absurdity without major policy changes in corporate tax code, trade agreements, worker protections in the US....
It's like filling up a sieve and pretending water isn't running out the bottom.
I mean have you even heard on CNBC they mention manufacturing? It's like the entire financial mindset is all about credit, financial instruments, debt, fictional money...
and if someone is talking about a production economy, it's like it's out of vogue...
I saw more concern yesterday on poor ole China going from 10% yearly GDP growth to 9% GDP growth than the reality of the US GDP contracting or the middle class shrinking.
What are these people thinking because that switch...when China overtakes the U.S. as the world leading economy...
that just ain't gonna be pretty across the board for everyone.
I mean talk about behavioral economics, it's like they have blinders on to some of these fundamentals.
Try posting a link in a comment on this site, I'm sure he'll appreciate the rant considering what he named his entire blog site. He lists us in his blog roll and I think he's a nice guy too. One of the economics blogger pioneers, breaking through the economic elitism when we had Bob Woodward writing books like Maestro on Greenspan and idiotorial texts like Fried Green Thomas Friedman Flat brain flat world.
I'm not calling a bottom at all. Just suggesting that we may be more than 50% of the way there. This is the first inflection point -- YoY sales increase -- along the way there.
Don't know if they take submissions though. You probably can tell that I wasn't very technical this time in my entry. The fact remains, that what we had before Congress yesterday was really a battle of philosophies, and the casualties were the American tax payer. Human nature must be taken into account, that is why the Soviets failed, and their mirror opposites on the otherside of the spectrum failed as well.
If one follows their reasoning then we should have no laws because of course bad behavior is not in the interest of society or the individual and the market in this case society will simply not reward such inefficient, non-cooperative behavior. Ha, ha.
I'm a huge math head on financial/economics systems, but not recognizing basic human and sociological nature (the crowd) is living in some pipe dream world. Isn't the road to hell paved by idealistic philosophies?
I have to agree with Jim Rogers on his live by the sword, die by the sword, at least he is consistent, whereas Greenspan and these other Neo-con/liber/ative/als simply want a rigged game for their new uber-elite class.
What a surprise since that's yet another sociological aspect that the subclass protects and secures it's own.
Nice rant on Greenspan, I'll bet the blog The Mess That Greenspan Made would enjoy this one.
I wouldn't call a bottom and that's because of the prime ARM reset rate.
2nd image in link.
Bottom line is houses are still plain too expensive for most wages and while our lovely Congress seems to think that importing workers will help, that will only depress wages, displace US workers further...causing more defaults and foreclosures.
will it still have Belgium chocolate?
;)
I'm just personally not that concerned about a shopping index and more greatly concerned about the production indicators.
I mean ok, they extended the great over-extended and living on massive debt machine....
but long term, well how long term can that go on?
Credit Card Charge Offs Defy Gravity
"It's a cookbook!!!"
- The Twilight Zone
(Sorry, couldn't help it... and I'm dating myself)
But somewhat understandable. In a society which spends years telling you that lazy people shouldn't be allowed to live, that family loyalty isn't important, that you can kill off the next generation if the sudden appearance of a pregnancy blows a hole in your future plans for yourself, then why not, when those future plans have been blown up by the greed of Wall Street and there is no future you can see that is good, at least relieve the human race of one more mouth to feed on welfare?
In other words, the result of the worst myths of the right and left wings in this country, in hard times, WILL be suicide among those who believe those myths.
Markets aren't just a tool, they are an INVENTION. Like the difference between and Adze (a sharp pointy rock) and an Axe (a forged head of metal with a stick attached for a handle).
Not only should markets serve man, they need to be *designed* to serve man, and to leave chaos and lying and greed as features of the system is as silly as failing to design the Tacoma Narrows Bridge for windflow patterns.
I just watched a local news program that said the calls to the suicide hotline are up 54%.
Folks, insurance policies do not pay on a suicide.
I don't know why people think anyone would want this but bottom line, you off yourself, your family gets nothing and is now in incredible grief.
I so wish people could rise above the moment and realize that this too shall pass and more importantly the destruction of the middle class, upon which more and more people are getting trapped by...is simply not their fault.
Who blame Ralph for Bush. The reason is ....NAFTA. Gore is the one who pushed for bad trade deals and the fact that race was even close really was his fault and Ralph was just doing his thing.
I also blame the ballot designer on that butterfly ballot.
I'm assuredly in the minority with that but if we didn't have guys like Ralph around, pushing for real policy change and sputtering out facts right and left we'd be in worse shape than we are.
that I'm a presidential elector for Nader in my home state?
And I'll tell you that it took me a while to punch his name on the voting machine, but I wrote Ralph in. It's a damn shame that Nader wasn't invited to the debates.
McCain agreed to debate him, but Obama refused to let Nader into the 3 debates.
He speaks truth so often and this time he specifically mentioned the use of the H-1B Visa to labor arbitrage and displace Professional workers! That's awesome because both Obama and McCain have promised to sell out Professional workers, possibly in the lame duck.
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