by The blogprof
Do 'signs of hiring on the horizon' qualify as the economy revving back to life?As the economy revs back to life, with signs of hiring on the horizon, the housing market is being left behind like Macaulay Culkin in “Home Alone.”
But they are far less careful in indicating the revved up economy because CNBC has a magic temporal telescope that has the capability of seeing jobs in the future.
In the past few years, we’ve all been careful to choose our words carefully, not calling it a recession until it fit the technical definition and avoiding any inappropriate use of the “D” word — Depression.
Things were bad but the broader economy never reached Depression territory. The housing market, on the other hand, just crossed that threshold.Here's th truth of the matter: housing prices were so inflated that they need to lose another 20% or so. What people seem not to get is that the housing boom wasn't purchased with wealth, but rather debt. The falling prices shouldn't be lamented. They should be left to drop to where they need to be. More from Hot Air and The Gateway Pundit
Home values have fallen 26 percent since their peak in June 2006, worse than the 25.9-percent decline seen during the Depression years between 1928 and 1933, Zillow reported.
November marked the 53rd consecutive month (4 ½ years) that home values have fallen.
What’s worse, it’s not over yet: Home values are expected to continue to slide as inventories pile up, and likely won't recover until the job market improves.
UPDATE: From The Detroit Free Press: Michigan 7th in nation for 2010 foreclosures. Obama's America. Granholm's Michigan.
No comments:
Post a Comment