I want to keep this video up for awhile so I will make a few comments about the market here.
Today was a "reality" check for the markets. The housing numbers were horrific. The last few weeks were just a bunch of traders playing bounces on the financials.
Today was all about housing and the reality of how bad its crumbling.
Housing is in an absolute free fall right now, and he worse housing gets, the bigger the losses on Wall St.
There are absolutely zero signs that housing has stabalized.
Read below. There are almost 20 MILLION vacant homes and inventories are not shrinking.
The government can keep throwing billions at this problem if it wants to, but its not going to stop the housing crash.
Guys, look at the numbers versus listening to the "bull****" coming out of Paulsons mouth. Housing is paralyzed right now and rates are headed up.
This is about to become a catasrophe. Housing prices must come down or this is going to become a death spiral.
Read about the nightmare below.
"July 24 (Bloomberg) -- Sales of previously owned U.S. homes fell in June to the lowest level in a decade as tumbling real- estate prices and consumer confidence signaled no end in sight to a housing recession now in its third year.
Resales dropped 2.6 percent to a lower-than-forecast 4.86 million annual rate from a 4.99 million pace the prior month, the National Association of Realtors said today in Washington. The median home price dropped 6.1 percent from June 2007.
Property Types
Sales of existing single-family homes declined 3.2 percent to an annual rate of 4.27 million. Purchases of condos and co- ops increased 1.7 percent to a 590,000 pace.
The median sales price fell to $215,100 from $229,000 in June 2007. The median cost of a single-family home decreased 6.7 percent to $213,800, while that of condominiums and co-ops fell 2.2 percent to $224,200.
Purchases decreased in three of four regions, led by a 6.6 percent decline in the Northeast. Sales rose 1 percent in the West, which also showed a 17 percent drop in the median price, the biggest of any region.
The glut of homes may be even greater because not all foreclosed properties are counted by the Realtors group. The group only includes foreclosures that have been listed on the multiple listings service.
Vacant Properties
The number of vacant houses hit an all-time high in the second quarter as more properties were pushed into foreclosure. A total of 18.6 million U.S. houses, apartments and condominiums stood empty, more than at any time in history, as lenders seized a record number of properties. The figure was 6.9 percent higher than a year earlier, the U.S. Census Bureau said in a report today.
More Americans are walking away from their homes as property values slump and borrowing costs on adjustable-rate mortgages reset higher. Bank seizures increased a record 171 percent in June from a year ago and foreclosure filings rose 53 percent, RealtyTrac Inc., a seller of default data, reported this month.
Home prices nationwide have fallen 18 percent on average from their July 2006 peak, according to the S&P/Case-Shiller index of 20 metropolitan areas. The drop in values may be giving those buyers still able to get financing reason to hesitate.
Consumer sentiment dropped in June to the lowest level in 28 years, according to the Reuters/University of Michigan survey, and the economy lost jobs for a sixth straight month, adding to reasons home buyers are sidelined.
Fannie, Freddie
Concern over the ability of Fannie Mae and Freddie Mac, the largest U.S. purchasers of mortgages, to survive the meltdown in subprime lending has heightened the credit crisis and may further curtail access to loans.
There is ``no sign of a recovery in housing'' this year, Caterpillar Inc., the world's largest maker of earthmoving equipment, said in a statement this week. The company said second-quarter profit climbed 34 percent, exceeding analysts' estimates, on demand for backhoes and mining tools in China and the Middle East."
Quote: "It pretty much summarizes everything doesn't it?"
One thing that this video doesn't mention is who is benefiting from Government debt.
Since debt is money borrowed, it incurs interest. The bigger the debt the large the interest payment.
Now, US Government borrows money from Federal Reserve (which is not Federal nor a Reserve). FED lends money to the Government with interest. So Government borrows money from FED to pay for expanses, than collects taxes from taxpayers to pay for the interest on those loans.
No wonder Paulson/Ben are so eager to help Fannie and Freddie, because in doing so it will double Government's debt and it's interest payments to FED.
I will leave the subject of who owns FED to your own research.
Great post - Jeff. I've signed the petition. There's no good economic news at the moment, and as usual the Republican party is doing its best to help big businesses.
Thats great! I am glad you signed it. I signed for the second time yesterday because they revised the petition.
Its having an effect as you can see below. It makes a difference when you speak up!:
Republicans urge Bush to reject housing bill By Robert Schroeder Last update: 4:55 p.m. EDT July 24, 2008
WASHINGTON (MarketWatch) -- Some Republican members of the House Financial Services Committee urged President Bush to reject a housing bill heading for his desk, saying it risks taxpayer dollars. The bill passed by the House Wednesday and likely to be approved soon by the Senate contains a backstop for mortgage-finance giants Fannie Mae and Freddie Mac that Republicans worry will amount to a blank check. In a letter on Thursday, Rep. Spencer Bachus, R-Ala., and 13 other Republicans urged Bush to veto the bill so lawmakers can re-write language about the companies
11 comments:
Great job with posting the video, Jeff you're on the right track. People should realize that their own government is milking them off their earnings.
Giving away 50% of your earnings in a form of income taxes, property taxes, sales taxes, health care and social costs IS NOT RIGHT!
Thanks Art
Karl Denninger did a great job on this video. He has a great site. Its on my favorites list.
It pretty much summarizes everything doesn't it?
After the bounce!
I want to keep this video up for awhile so I will make a few comments about the market here.
Today was a "reality" check for the markets. The housing numbers were horrific. The last few weeks were just a bunch of traders playing bounces on the financials.
Today was all about housing and the reality of how bad its crumbling.
Housing is in an absolute free fall right now, and he worse housing gets, the bigger the losses on Wall St.
There are absolutely zero signs that housing has stabalized.
Read below. There are almost 20 MILLION vacant homes and inventories are not shrinking.
The government can keep throwing billions at this problem if it wants to, but its not going to stop the housing crash.
Guys, look at the numbers versus listening to the "bull****" coming out of Paulsons mouth. Housing is paralyzed right now and rates are headed up.
This is about to become a catasrophe. Housing prices must come down or this is going to become a death spiral.
Read about the nightmare below.
"July 24 (Bloomberg) -- Sales of previously owned U.S. homes fell in June to the lowest level in a decade as tumbling real- estate prices and consumer confidence signaled no end in sight to a housing recession now in its third year.
Resales dropped 2.6 percent to a lower-than-forecast 4.86 million annual rate from a 4.99 million pace the prior month, the National Association of Realtors said today in Washington. The median home price dropped 6.1 percent from June 2007.
Property Types
Sales of existing single-family homes declined 3.2 percent to an annual rate of 4.27 million. Purchases of condos and co- ops increased 1.7 percent to a 590,000 pace.
The median sales price fell to $215,100 from $229,000 in June 2007. The median cost of a single-family home decreased 6.7 percent to $213,800, while that of condominiums and co-ops fell 2.2 percent to $224,200.
Purchases decreased in three of four regions, led by a 6.6 percent decline in the Northeast. Sales rose 1 percent in the West, which also showed a 17 percent drop in the median price, the biggest of any region.
The glut of homes may be even greater because not all foreclosed properties are counted by the Realtors group. The group only includes foreclosures that have been listed on the multiple listings service.
Vacant Properties
The number of vacant houses hit an all-time high in the second quarter as more properties were pushed into foreclosure. A total of 18.6 million U.S. houses, apartments and condominiums stood empty, more than at any time in history, as lenders seized a record number of properties. The figure was 6.9 percent higher than a year earlier, the U.S. Census Bureau said in a report today.
More Americans are walking away from their homes as property values slump and borrowing costs on adjustable-rate mortgages reset higher. Bank seizures increased a record 171 percent in June from a year ago and foreclosure filings rose 53 percent, RealtyTrac Inc., a seller of default data, reported this month.
Home prices nationwide have fallen 18 percent on average from their July 2006 peak, according to the S&P/Case-Shiller index of 20 metropolitan areas. The drop in values may be giving those buyers still able to get financing reason to hesitate.
Consumer sentiment dropped in June to the lowest level in 28 years, according to the Reuters/University of Michigan survey, and the economy lost jobs for a sixth straight month, adding to reasons home buyers are sidelined.
Fannie, Freddie
Concern over the ability of Fannie Mae and Freddie Mac, the largest U.S. purchasers of mortgages, to survive the meltdown in subprime lending has heightened the credit crisis and may further curtail access to loans.
There is ``no sign of a recovery in housing'' this year, Caterpillar Inc., the world's largest maker of earthmoving equipment, said in a statement this week. The company said second-quarter profit climbed 34 percent, exceeding analysts' estimates, on demand for backhoes and mining tools in China and the Middle East."
http://www.bloomberg.com/apps/news?pid=20601087&sid=a55J7k2L8u3A&refer=home
Quote: "It pretty much summarizes everything doesn't it?"
One thing that this video doesn't mention is who is benefiting from Government debt.
Since debt is money borrowed, it incurs interest. The bigger the debt the large the interest payment.
Now, US Government borrows money from Federal Reserve (which is not Federal nor a Reserve). FED lends money to the Government with interest. So Government borrows money from FED to pay for expanses, than collects taxes from taxpayers to pay for the interest on those loans.
No wonder Paulson/Ben are so eager to help Fannie and Freddie, because in doing so it will double Government's debt and it's interest payments to FED.
I will leave the subject of who owns FED to your own research.
Art
Yeah it gets complicated.
If everyone continued to pay their loans than it would be a profitable game. The problem is subprimer delinquencies are at 30% and Alt-A's are at 10%.
These buyers will end up defaulting and these are real losses have to be taken by the debt holders. The FED/GOV is who will eat these losses.
Nobody wants this debt Art because its not profitable based on defaults.
If the Fannie legislation goes through, we end up paying for all of this mess. Paulson is doing this to try and prop this stuffed housing pig up.
It won't work but it helps his Wall St. buddies at our expense.
"Nobody wants this debt" Jeff you hit the nail.
This is exactly why Fannie is a corporation is trying to get out of the game by unloading the bad debt onto the Government.
Great post - Jeff. I've signed the petition. There's no good economic news at the moment, and as usual the Republican party is doing its best to help big businesses.
Art I agree
Fannie knows they are a mess! This is why the government needs to stay away.
It will get us to the bottom in housing much faster. All of this intervention is so retarded!
Minton
Thats great! I am glad you signed it. I signed for the second time yesterday because they revised the petition.
Its having an effect as you can see below. It makes a difference when you speak up!:
Republicans urge Bush to reject housing bill
By Robert Schroeder
Last update: 4:55 p.m. EDT July 24, 2008
WASHINGTON (MarketWatch) -- Some Republican members of the House Financial Services Committee urged President Bush to reject a housing bill heading for his desk, saying it risks taxpayer dollars. The bill passed by the House Wednesday and likely to be approved soon by the Senate contains a backstop for mortgage-finance giants Fannie Mae and Freddie Mac that Republicans worry will amount to a blank check. In a letter on Thursday, Rep. Spencer Bachus, R-Ala., and 13 other Republicans urged Bush to veto the bill so lawmakers can re-write language about the companies
Here is the link if you want to sign the petition in case you missed it at the end of the video.
http://www.fedupusa.org/
We can make a difference! We have one shot to stop this legislation.
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