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DC is flying
And highly likely DC soon will be burning.
I think that you've already seen this particular travesty of a bankster morality play. Don't spoil the ending for the rest of us. ;-)
What is he talking about?
You forgot the "/sarcasm" at the end.
Everyone can start by calling it a DEPRESSION. The greatest ever, just cannot see it that way because SNAP is operational and Stars are dancign on ice and in Joe and Jane's eyes.
Double-dip, I'm sure most people thinlk tea-bags or ketchup when they hear that. Clever distraction deflection verbiage.
It's a DEPRESSION. Let's get over that hurdle already.
Agreed, ORI. Let's call a spade what it is: a depression that everyone is in denial over; and I'm not talking about the river in Egypt. I understand the cycle of grief and people need to come to terms with it, however the time is nigh to finally (and collectively) pull our head out of our ass.
It is a depression. No matter how TPTB want to 'paper over' the facts.
well I think it's rather bullish...
Just fills me with the urge to go out and buy a new house...
and to see if I can't find a bigger depth charge to strap my life savings to...
My first thought when I saw the graph was "who got to name this a double dip?" That anemic upturn isn't very impressive. Terms like head fake and dead cat came to mind. How much of that blip was the tax credit? It looks like there's still a very big elephant in the room with us. Let's talk about Libya instead.
doesn't that look just like the early part of the DOW chart 1929 -1940....
Seriously, the only folks doing well are those sucking at the government tit in DC. Time for some tar and feathers.
Well actually Capitalist10, gold investors are doing OK as well...
so if you're a government employee who invested in gold, I should think you'd be more than a little happy...
As soon as the government shuts down all those government workers who are "taking time off" can join the throngs of DC citizens in smoking crack and living on the streets. Joy to the world.
"Cash buyers" of 2009-2010 are now officially raped. Quite predictable.
More rental untits comming right up..
In 09, we saw quite a bit of cash on the sidelines here piling into local low end residential properties for rental speculation. Essentially, older folks shifted money from CDs into houses because the rental income paid a higher % than they could get on their money otherwise... Recently, I think our market has gotten a little softer whereby these people are starting to hit the exits... not a lot, but definitely starting to fray around the edges.
I do believe there will be a day of some semblance of price discovery... but we've yet to see it.
A neighbor of ours ( a retired gent ) engaged in the very transaction you describe: purchased a single-family property in late '08, for the rental income. The home, however, is situated in a plat in which the properties had been going for >450k during The Bubble's zenith; he likely bought lower than that, but I suspect the home has not appreciated at all, and the necessity for a premium rental rate ( the standard rates run likely $500 or so less ) has resulted in the place being vacant for several-month stretches at a time ( as it is now ).
Frankly, real estate speculation is perhaps the sharpest of falling knives for a speculating neophyte to catch. Yet, as you remark, some intrepid retirees seek this option, if income is desired; CD rates being essentially nil...but then there is that return of capital thing, isn't there ?
Housing bottoms are really easy to spot; they're very wide, shallow curves. You can be nearly two years late in buying into them and still miss very little appreciation on the recovery.
Anyone who has studied this knows that the V-shaped 'bottom' in '09 was a head-fake. Just like anyone who bought the V-shaped 'bottom' in '91 missed the true bottom which didn't come until '96 (at least in California).
The real bottom in this market won't be here until 2014 (at the earliest). All you have to do is look at Shiller's chart of inflation-adjusted home prices going back over 100 years to see this: the housing bust cycle always lasts longer than the boom.
Even Cramer should have seen this... but of course, he's Cramer...
Pool shark, I would say that the housing boom is now finished for at least one generation, maybe two...
I agree Harlequin.
What I'm saying is that we're still at least a few years away from a bottom. After that, I don't expect any significant appreciation, or 'boom;' just a bottoming.
Unless, of course, the economy flies apart (good possibility); then all bets are off, and lookout below...
yes old stick, currently donning my poo-proof pants as we speak...
and heading for the pub.
Walt Clyde Frazier, is that you?
in fact I seem to remember that it was predicted, many times right here on ZH...
But pending home sales as reported yesterday were up 2.4%. Beating expectations.
We need to cling to this positive data point as evidence that the dreaded double dip (which presumes the first dip ended) will not come to fruition.
Furthermore, you can/can't eat plutonium. Ths is deflationary/inflationary.
What's up with gold ? All the swans are blocking out the sun in Chicago ....
Can you call up Lear and get some insider info ....
It looks like you have again prematurely ejaculated your gold bashing jizz. It must be tough 'cause you get so few opportunities to whip it out. And when you do it is always a disappointment.
This might help: http://1.bp.blogspot.com/_pi6QiEpOQOg/S4ycqbh54HI/AAAAAAAAAbM/Vd-FpHNlkyE/s320/ill_extenze2.jpg
PM Miners just went green on the day.
Gold was in the same range OCT 20th, with all the new black swans we should be over $1,700 by now .....
The action has been in Silver the last few months. That will probably continue as the Gold/Silver ratio approaches 15 (Implying a much higher silver price if Gold stays range-bound). That will change however, though it might be awhile.
Hey Spalding, I answered that here at 9.01. You posted this at 10.36 having not answered my earlier post which deals specifically with this comment...
Got you sussed old stick...
Hey Spalding, I answered that here at 9.01. You posted this at 9.38 having not answered my earlier post which deals specifically with this comment...
As Mark Twain said, "there are lies, damn lies, and statistics." Which means you can make "statistics" say anything you want with data manipulation.
...but only 50% of the time...ask 80% of the people...90% of them will say this
Coincedentally, the Obama administration just announced their latest economic recovery plan in coordination with the Federal Reserve. It only had 4 bullet points.
2. Damn lies
4. Rinse & Repeat
I'm not a partisan fan of either tbtf political party, but it appears this plan was directly stolen from the Bush Adminstration, who used it sucessfully in 2 foreign wars AND domestic economic planning.
Double Dip?!? I only see a dead cat bounce.
They say you can have a L shaped recovery.
The new normal. Positive is negative, just reverse the polarity.
Need some Chinese buyers.Give free visa
Assuming western stupidity has spread to Asia.
Have you seen the overdevelopment in China?
yeah, we did export something to China. It's called Irrational Exuberance.
Hopefully, everyone across the nation is writing their Congressional leaders and demanding the end to the QE experiment for good. It has only helped the wealthy stock owners of the highest levels, and the other 95% of the people are paying more for everything and have nothing, many not even a job. This has to stop. Trying to force a recover at the expense of the people must end.
Agree with it should be ended. I fail to see how that will help housing though. Reverse to Bullard's slides will happen - interest rates will rise (potentially substantially, depening on debt appetite), stocks will tank, commodities will tank, housing will tank (driven by interest rates and backed up with upcoming of waves of foreclosures due to rate resets), commodities will tank. Dollar will gain :)
Or, what outcome you would expect ?
"Hopefully, everyone across the nation is writing their Congressional leaders and demanding the end to the QE experiment for good...... This has to stop. Trying to force a recover at the expense of the people must end."
Congress cannot control QE, as you know or should know. They can, however, control the terms of trade agreements, which is where most jobs have been lost (that and productivity itself). So, why not go after the real culprit instead?
My congressman listen to me? BAHAHAHAHAHAHAAAA! That was a joke, right?
We're going into a Depression!
Going? We've been in one for a couple of years.
The depression started 2007-2008. We had a Fed manufactured reprieve, but they fixed nothing, only delayed the inevitable and magnified the ultimate damage. I think future generations will refer to what we are about to experience at The Great Collapse.
Hey Blythe, that's going to happen regardless. the sooner it hits the easier it'll be. Massive hyperinflationary collapse a year from now (or two ) will be much worse to deal with then going into a depression now.
Oops, what a catch 22 for Ben: should I keep interest rates low to (try to) save home owners or raise (to try to) avoid inflation.
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