This page has been archived and commenting is disabled.
Shocking CNBC Headline: "Home Price Double Dip Begins"
Diana Olick, by far the best reporter at CNBC, and not merely an anchored regurgitator of propaganda bullet points, let one slip today, by posting an article on CNBC titled: "Home Price Double Dip Begins" (and we have a screenshot in case CNBC realizes the grave error it has made and retracts it). While nothing new to Zero Hedge readers, where we have been making the case that the economy has nothing to double dip to, considering it has been in one depression for 33 months now, it may catch the broader public by surprise. Ms. Olick's arguments: "given the combination of the expiration of the
home buyer tax credit and the increasing number of loans moving to final
foreclosure, we knew that home prices overall would take a hit, but it
would take a while. Well we're here." And there you have it - there is little that can and should be added when dealing with the simple truth. Of course, for CNBC to regain its floundering Nielsen ratings it would take all the daily staff to follow in Ms. Olick's example and report what is actually happening to the country, instead of what Joe LaVorgna believes should be happening, based on the goalseeked output his "economic" model is spewing forth. Alas, it is now far too late for the cable station to regain much needed credibility, especially when anchors tell guests who dare to question the propaganda assumptions that they disagree with they are not welcome.
More from Diana.
Two new reports out today prove the consequences of oversupply of organic inventory (12.5 months on existing homes in July according to the National Association of Realtors) and the shadow inventory of foreclosed properties (estimates vary widely and wildly). CoreLogic's Home Price Index shows home prices "flat" in July as transaction volume continues to decline. "This was the first time in five months that no year-over-year gains were reported," according to the release. In June, prices were up 2.4 percent year over year. In addition, "36 states experienced price declines in July, twice the number in May and the highest number since last November when prices nationally were still declining."
And there's the rub.
Prices have been recovering since last Fall, largely thanks to the artificial stimulus of the $8000/$6500 home buyer tax credit. But prices were also benefiting from a slight bump in confidence in the housing market, fed by an apparent drop in the foreclosure numbers. In reality, the foreclosure numbers were dropping only because banks and states were delaying the process, as they tried to cram as many borrowers as possible into what we now know is a largely unsuccessful government-backed mortgage modification program.
Now home buyer confidence is back in the dumps, which is clear from another report out today showing that for the 3rd straight month the percentage of home sellers on the market who have slashed their asking prices at least once has gone up. Twenty-six percent of sellers on the market in August, according to Trulia.com, had lowered their expectations, and hence their prices. Sellers on the market today have cut $29 billion off their collective home equity.
There is simply much more pain in store for home prices, which of course means that Jamie Dimon jumped the shark on beginning the trend of reducing NPL reserves and charge offs, when very soon even this artificial boost to earnings will no longer be applicable. And what is oddest is that just today JPM announced that both credit card delinquencies and charge offs have started to increase - this is the environment in which the bank sees loan performance continuing to improve?
h/t Mark Mansfield
»
- 23936 reads
- Printer-friendly version
- Send to friend
- advertisements -
2 scoops, bitchez?!
derekste
Bingo! Let's use non threatening terms. Ones that remind us of pleasant experiences. Ice cream, ice cream, who wants ice cream the music of Mr Softie.
I love Semantics.
"something that could never, ever possibly destroy us"
Mr Stay Puft Marshmallow Man
http://www.youtube.com/watch?v=d-sALU_hveA
In Soviet Amerika,
2 scoops, one O-lick.
Dixie cups and push-ups too...
"Ah, now summertime's here babe, need somethin' to keep you cool..."
"Better look out now though, Dave's (Rosenberg) got somethin' for you..."
But Cramer called the bottom over a year ago. I feel so cheated.
http://www.cnbc.com/id/31388528
Aptly named "Mad" (as in "insane") "Money" program where ex-GS monkey plays funny sounds and yells out nonsensical gibberish to clueless audience. Dumbtertainment.
I like it, I like it. The whole process can just be called "dumberment."
I love it! Here's both words in the same sentence:
"The pearls of inanity from the mouths of dumberment officials can be quite dumbertaining."
thanks for the link hardwood i needed a laugh. see how smug he is on the video. what a douchbag.
TIMMY: What are you doing?
GEORGE: What?
TIMMY: Did...did you just double-dip that chip?
GEORGE: Excuse me?
TIMMY: You double-dipped the chip!
GEORGE: "Double-dipped"? What are you talking about?
TIMMY: You dipped the chip. You took a bite. And you dipped again.
GEORGE: So...?
TIMMY: That's like putting your whole mouth right in the dip! From now on, when you take a chip - just take one dip and end it!
GEORGE: Well, I'm sorry, Timmy...but I don't dip that way.
http://www.youtube.com/watch?v=YWuSi00CcNk
I'd prefer one big Scoop!
So what's the move?
Sell home and avoid equity erosion or hold and allow hyperinflation wipe out mortgage?
That is the core question. Anyone who claims to know the definitive correct answer is kidding themselves.
Very true. Unless you are decidedly on one side of the Xflation debate, it might be wise to hedge yourself:
If you must, buy the home and buy Treasuries far out into the yield curve. With additional QE an inevitability, go for the 30-yr note.
I'm a believer that home prices will fall a lot from here due to higher interest rates and higher taxes. People buy what they can afford so with higher interest rates and higher taxes, home prices have only one way to go.
So with that said, (1) the loss of equity is a sure thing so selling and investing the proceeds in gold would serve to preserve my equity although selling, moving, and finding a place to live is a pain in the ass.
The flip side is (2) wait for the hyperinflationary event and buy up cheap dollars with gold/silver to pay off mortgage.
Seems less risk in #1 but more hassle.
Whoopde ahahhahahhahahha. Oh man. Thanks for making my day. I needed a good, gut wrenching laugh.
Your theory is that "people buy what they can afford"?
I have a competing theory.
I call it, "People will buy any shit at any price if the illusion is sufficiently complete, whether or not they can afford it."
To think that people won't buy houses because they can't "afford" them seems to me to be turning the years of 1999-2006ish on their heads.
Are you new here?
For the period between 1999-2006, you are correct, people bought what they couldn't afford and hence, home prices went vertical.
It is now 2010 and people can no longer buy what they cannot afford.
Therefore, my statement, "people buy what they can afford" is correct for today's circumstances.
Watching old episodes of House Hunters for laugh value now. Last night they had a twenty-something couple in Atlanta looking at homes in 2008. Both making around $30K and looking at a $370K home. The twentysomething husband looked at the home and declared it a good investment despite being about $100K out of their price range. The realtor just smiled a big happy smile.
Every one of those home shows was propganda. I think many used actors, in fact. I'm not sure how many were real sales or what have you. Big time collusion with the MSM on all fronts to inflate the housing bubble. A massive, massive conspiracy against saving and being smart with your money.
To some degree, most TV shows are propaganda. I don't believe these shows were part of any consipracy though. Creators/producers of these shows develop shows based on what people might be interested in. Buying and renovating homes was of huge interest to many back then.
"I don't believe these shows were part of any consipracy though."
If you watch Century of the Self you might think differently. It's down right scary what mass marketing is cabple of doing.
And mass hysteria. Also, most dont want to hear how much the total will be for a purchase, just what the payments will be, wealth=debt.
I just began watching the series, i highly recommend it to everyone. Get it, watch it, learn it.
all depends on how you define 'conspiracy'. if you're willing to consider the existence of something like morphogenetic fields, then you may wish to reconsider your belief.
In the hinterlands austerity is, by necessity, "in."
Option 3: Bulldoze the home and use IFRS accounting system to write-up property value back to par by claiming income potential from new farm land.
Don't forget - Recognize GAAP (and tax) gain from property bulldozement. Part of new FASB 666 directive.
Highest and best use?
http://www.youtube.com/watch?v=ZsgOaCZ2Lag
Fan-freakin-tastic. Thanks for the link.
I think FASB 666 was "Mark to W(Ever)TF Jamie and Lloyd feel like today Market"...
Known in policy circles as:
Timmay the Boy Wonder's Prime Directive
Yeah, and then get the farm subsidies....
My strategy would be to sell the house, use the equity to buy all the gold you can. That's assuming if you believe hyperinflation is around the corner. Win win.
Assuming they're not already underwater.
Being underwater and still paying the mortgage is akin to participating in Enron's 401k program after full disclosure that the company is insolvent.
You have a morbid sense of humor. Kudos.
Regardless, you have to admit that people are doing it. So many fears of "hurting my credit score" and such keep sheeple from walking away.
Most of the people I know of who are hanging on are not doing out of credit score fears, they're doing it because they think doing otherwise would be "wrong", and they're afraid of being ostracized. And they're right - a hear a lot of bitching from people about those who are walking away. Complaints that they are "driving down the value of my home", and that it's "dishonest".
Of course, these complaints come from people who have absolutely no clue how they're being fucked 3 ways from Sunday by the banks, the government, the Fed, etc. You have to remember that on main street, we're in the middle of a booming "recovery". A lot of people buy this shit, they really do.
Pretty soon, people aren't going to give a good flying eff at a rolling doughnut what their credit score is.
But before the deflationistas go "aha!" at all this deflationary debt-writing-off, I believe Ben Bernake has plenty of green ink to counter it.
Actually, I am staying in my $140,000 mortgage on my $70,000 (Property Tax Assessor value) home bought in 2008 purely waiting for Hyperinflation. I am too lazy to move, I love the house, and I have 20 oz of silver to pay off all my bills if things go like I think they will.
Now I just need to find a way to survive until inflation pays for everything.
Not really.
I'm staying in because possession is 9/10ths of the law. I sense that after the wheels come off them as has, keeps. Maybe not easily, but those are the odds. It's the same in nature; it's hard for a weasel to evict another weasel already in it's hole because the hole-holder fights harder -- having much to lose -- thus the outside weasel is more likely to stay outside and vulnerable.
Then hyperinflation sets in and my mortgage becomes chump change, assuming my wages keep up which they will not (can you say wage stagnation?) in which event I stop paying my mortgage, along with a lot of other things, in anticipation that the system has ceased to exist anyway and I'm in a good position to drive a stake into its heart, killing it forever, by no longer participating.
Not a sheeple, me. I'm a predator.
Scary thoughts, but nonetheless valid points. But I think you're ignoring my big point, and that was in talking about the sheeple that are underwater and staying there, making whatever payments they can. It doesn't matter that you're the predator gambling on cornholing your bank during hyperinflation, you're a ZH reader. That gives you another 20 IQ points right off the bat. You're in the minority by definition.
All of the other people out there with honest, hard-working jobs, struggling to get by and unable to see the coming crisis because they have to work too much overtime to keep their kids in school...what about them? Why are they doing it?
Because they're honest and NOT socialist moochers!
Inertia would be a good second guess.
"Because they're honest and NOT socialist moochers!"
Or capitalist moochers!
because maybe their intuition hasn't hit them over the head yet? perhaps it isn't a matter of intelligence (or lack thereof), but ignorance (or lack thereof).
remember who we got running the country right now...a bunch of eggheads. intelligence has little to do with the recognition of reality as it really is, but rather where we each choose to focus our perception.
besides, those sheeple are smarter than you think, even if their IQ is not Hawvawd material.
And if hyperinflation doesn't happen?--what then? A completely undiversified juggernaut. Just saying-putting all your eggs in one basket means you had better be 100% sure you are right. Or buy a little farmland, etc. It's a tough call for all of us. I am in limbo with some PM's and too much cash. If I buy a house for the rest of my life right now, let's say it's worth $1400 a month rent. That's about $17,000 a year. I expect this $230,000 house to decline 30% more from the now, about $70,000. In five years it's a break even. In six, with taxes in a state with 3% cap in property taxes is $15000. So add another year to breakeven to renting.
I pay cash. It's mine. I can do what I want with it. It takes 6 years to break even vs. renting (and I am talking a new house with warranty, new roof, little maintenance)..and the year is 2016. I never plan to sell and my son will inherit it. It's a breakeven. If I live for several more years then if it goes 50% lower, then I still am even in terms of cash flow. So I didn't get rich when I could have bought this or that, but I still have money to do that with.
Or, I say fuck it and I buy a $230,000 worth of PM's and pay $1400 a month rent plus live with all the crap that renting entails--no ability to upgrade except to benefit the owner, no way to make it more energy efficient except to benefit me short term. No adding on a bathroom, no flexibility, except to benefit the owner.
It's a personal decision. Does hyperinflation really depress a house price with land? Or is it in the asset category of a commodity or PM. When a currency is debased if it were to happen, is your mortgage in old dollars or all contracts converted to new dollars. If I pay cash and I own it and break even in 7 years on a 30% decline in prime Oregon irrigated property, am I the loser or just doing fine on a fixed income since this is the last house I will own and have other money to put to work in more PM's. It's called home.
Lots of questions. Not many answers. No one knows.
Sell to who? Last weekend I toured a very upscale neighborhood with lots of for sale signs with an add-on 'drastic price reduction' sign.
I'm sure there are willing buyers at the right price. But see above posts regarding equity. You should sell if you still have equity in the house. If not, I think it's time to simply walk away.
ummm... it's immoral to throw good money after bad... and to jeopardize the survival of ones family... that said... no sympathy for those who leveraged-up on taxpayer dime... a pox on all their houses...
Ah, but there's a bit more than merely being willing buyers, there's also got to be willing lenders... and, in case anyone isn't paying attention, there aren't that many out there (they're only getting tighter and tighter).
Negative feedback loops WILL DRIVE THE ERROR input to ZERO! No exceptions to laws of physics.
Followed by a "drastic property tax increase" due to the shrinking tax base.
For those who may have not heard this argument (am I the only one presenting it?), I've got a completely different view of this scenario.
Who has been been getting all the breaks since this implosion? The banks.
Who is sitting on increasingly more homes? The banks.
Who has the most power? The banks.
Who would be impacted the most by increases? The banks.
When you're seeing/reading of police and fire departments being hacked (pretty immovable forces), then clearly its a sign that the banks are dictating how things are going to go- property tax reductions (have already seen some in my area).
I'm hoping for the latter...
There is no "move". Your house never should have been thought of as an investment in the first place. It's an expense, pure and simple. Now...if your house is located on productive farmland, then the LAND might be an actual asset.
People should be creating farmland in whatever space they have. You can't do that w/o permission on other people's property.
I'd advise people to contact local conservation district entities (should be non-profits) before engaging in any signficant land alterations or farming practices. These folks can steer you away from trouble with county zoning/use issues: where I am seems that the govt can find/declare just about anything/everything "wetlands," in which case if you look at them cross-eyed they'll look to take a pound of flesh from you via "mitigation" (place a big chunk of your land in "reserve," or shell out a bunch for putting other land ["projects"] in reserve).
Fill those "wetlands" with fish and domesticated ducks. There are always workarounds to be found.
Yeah, one would think that, but... to be classified as wetlands there only needs to be the presence of wetland vegetation, ponds aren't necessary. Believe it or not, I suspect that making some wetlands more wet (adding a pond) would actually be a violation!
I know a local farmer who has some farm land in a flood plain that's near a river. He did some things to draw the attraction, and ire, of the ecology folks and he's been told that he has to come up with a plan to mitigate impacts to Orcas! (Orcas are whales) Never mind that there has probably never been a whale that far up the river (ever). He asked what he's supposed to do and no one was able to answer! I appreciate being mindful of property (and those downstream), but some of this is clearly taking things a bit too far.
you really upset me, emotionally.
better yet, don't grow in the ground at all, but build raised beds that are 'portable' & where you can control & conserve your water input.
?
Summer liquidation sales a bust, so the banksters must fire-sale their shit out of the warehouse.
BofA, which currently forecloses 7,500 homes per month nationally, will increase that number to 45,000 per month by December 2010.
That's a 600% increase. That's just one bank. Foreclosure carpet bombing coming right up.
www.doctorhousingbubble.com
sell it to who? People dont have the money, or credit, or a job..Look for the Ninja loans to soon return..
the Fed(s)
what's the catch? there has to be a catch...
Clearly Diana's just being rude.
LMAO!
Perhaps she forgot to read her marching orders today.
Nice!
Via Erin Burnett's magic marker.
You Mean:
Erin "I may have the chest of a 10 year old boy, but I have clout damn it" Burnett ?
that kinda mean to say about a woman with a small chest, guess you didn't use the word breast cause ain't none.
Sorry kathy... but after watching the CNBC "D" team, Bartiromo et al...
Erin "Let'm eat lead paint" Burnett's boyish charms leave me some how unimpressed... ethically, morally, intellectually and endowed-ally...
where are your wives?
Boy did they screw up, the powers that be are not going to like this.
REgaining credibility, now thats funny, they are just trying to pull some of ZH's market majority.
It's ok, they can just use fannie mae's line...this one got away from us...
http://www.cnbc.com/id/39196023
Chase Online Banking Down Since Monday (or Tuesday depending on the report)!
http://www.chicagotribune.com/business/ct-biz-0915-chase-20100914,0,7528...
http://www.9news.com/money/article.aspx?storyid=153091&catid=344
http://www.blockislandtimes.com/pages/ad_details/?id=28944378
It's been down since Monday Night 9 or so EST. Apparently came up this morning but is really still down.
Kind of big news that nobody seems to be worried about.
What's going to be interesting is how many late fees (and jacked interest rates) people will be hit with because they can't pay their credit card on line on time because the system is down. Chase has been pushing (big time pushing) paperless statements and online billing and payment.
So what happens when your clients can't go online to pay the bill you encouraged them to pay online? Just askin' Chase baby, just askin'.
anyone still banking with those fuckers deserves everything they're about to get.
THE JPM BRANCH OF SKYNET'S NEURAL WEB DOES NOT APPRECIATE YOUR SUPPOSITIONS, MR. DISSONANCE. ALL YOUR PAYMENT TIME-STAMPS ARE BELONG TO US. ONLY WE KNOW, BECAUSE WE NOW CONTROL TIME. WE BOUGHT IT FOR 33.346454 CENTS ON THE DOLLAR WHEN GOD FORECLOSED AND HAD TO GTFO.....10101010101010101!! OR, AS YOU PUNY FLESHBAGS LIKE TO SAY, "HAHAHAHAHAHAH!"
There may yet be some justice...hopefully, Dimon will be the first one into the soup-pod with a bunch of plugs in his head and spine.
Problem might be their (stupid) new system to accept check deposits via cell phone pictures. I heard this on the radio yesterday and just about puked! Ooh... now you can deposit checks using your cell phone, just snap pictures of both sides and send them in!
Kind of shows you how desperate for business these fuckers are.
That is a rediculously long time. I suspect someone's been outsourcing.
It was all outsourced to my neighbor, who's been running the entire operation out of his garage. Some raccoons got inside and took a dump in the server. It's gonna be down until the Hazmat team is finished.
Rocky Raccoon, was that you? If so, atta boy.
Minimize cost... Maximize late fees...
Don't mess with Jamie's bonus inputs, CD... Jamie knows people in the right places...
That may be so, but I've got Zero Hedge's RockyRacoon on my side. He'll take a dump in Jamie's Mercedes for the simple pleasure of excreting and won't charge me a dime for services rendered. Imagine the damage he could do if he's on the clock? :>)
Or maybe he could upper-deck Dimon's toilet.
That would be the single greatest dump ever taken...upper-decking a solid gold throne, lol.
"He'll take a dump in Jamie's Mercedes..."
Won't Phase Jamie in the Least...
Jamie knows people, CD... He'll have his puppet Obummer or his nephew Lil' Timmay clean that right up...
And maybe Jamie will have his puppet Obummer pass legislation for an infrastructure "bank" to pay for a thousand new Mercedes.... Bahahahhhaahaha
It was ME! And WE are coming to get YOU!
Fuckin' funny...
Funny as hell and an instant ZH classic. I was hoping you (and your friends) would show up. :>)
Buy LAND, FARM LAND, that is! If you want to survive what's coming, you have to EAT! The other day I was telling a few trading buddies of mine to give this site a check, they all laughed me into oblivion, guess who will show up for food?!?! It really seems that common sense is a VERY RARE commodity, possible on path to extinction?! Well, I don't give a shit, rather PREPARE! hhehehe
Traderjoe agrees with TradingJoe.
Seriously, besides POMO, I see no good market news today. If the Dow closes down 35 or so (my guess/hope), and TLT way off (have bonds established a short-term double top?), what will PD's buy in the next POMO? Depending upon how they get backstopped, even free leveraged money doesn't like losses.
Guns AND Butter bitchez!
Farm land is useless without seeds, fertilizer, fuel, tractors, trucks, combines, all the usual farm equipment. You also would have to secure said equipment and land, and have some sort of a local market to trade your goods in. Just sitting on farm land is idiotic.
Just sitting on farm land is idiotic.
I know a farmer who is outstanding in his field.
Farmland normally sits next to other active farmers. They'll happily lease your land to plant, especially if they expect a favorable crop price. You get other nice bennies, too, such as hunting birds on their private land. I'd call it gentleman farming except I ain't really no gentleman.
Obviously you're not familiar with what one can do with farm land...
Agreed. Pasture farming comes to mind...
Thanks Hulk. I'm often grateful to see you posting here. Not too many people really get it... the old systems are dying, and there are new ones coming along (I'm trying to help pick up the slack that we're going to encounter).
TOOL GHOUL
http://williambanzai7.blogspot.com/2010/09/bens-world.html
Keep on rockin'!
Banzai you rock! Looks like Ben junked you! :)
You are a very disturbed artist, but I repeat myself.
When the network goes dark, they can always rely on their books...
http://i.imgur.com/hWufc.png
Diana is fab while bringing some real stile
http://www.youtube.com/watch?v=6v62mQZyz-M
They may retract it, I have seen them do so when reporting bond auctions, but they have to post the truth around some. Remember, you have to invite the vampire in in order to submit. The masses must be made full aware of the situation and to be tramautized. Unwilling can not be lead.
Protect yourself from all the coming doom & gloom!
Tune to CNBC & FBN to profit off the coming misery!
Make sure to be the first to make the right calls in our double-dip economy!
Whore is as whore does.
Gold is the second most searched term on yahoo today. Storms 'ah comin'!
They can only hold back the flood waters for so long.
Every morning I wake up wondering if that beautiful black swan will be swimming today!
Apparently those who have the ability to read Nostradamus say November.
And the Mayans said 2012.
So the odds for that morning are good. We appear to be in range.
Anyone who thinks Nostradamus or the Mayans had any predictive capacity are fucking idiots.
The Mayan prediction is astronomical and accurate; Nostradamous was insightful as a poet in his day. If these produce imagination so let it be; the mind should never be restricted.
if you look on the bottom of this page:
http://www.bibliotecapleyades.net/ciencia/dresden/dresdencodex03.htm
you'll see an 'eclipse table'
notice the columns "Dates of occurrences of eclipses near
warning stations and prediction error (days)" .
i'll give you the first several prediction errors in days
0, 1, 0, 1, 0, 30, 0 29, 0, 1, 0
what a bunch of fuckin idiots eh?
Every morning I wake up wondering if that beautiful black swan will be swimming today!
I've seen white swans swimming in the Allegheny and have come close to some by canoe. They are beautiful, impressive birds. Much bigger than one might expect.
If the market thought there was not going to be a double dip in housing there would be a market in housing.
Right, but no double dip for the Stock Market.
What is the difference? I guess that housing prices affect the Middle Class and the Stock Market affects the Wealthy Banks and Traders.
So, Double dip for the Middle Class but no Double Dip for the Wall Street Traders? HUH?
Bernanke can buy paper assets and he can have his assets in MBS, but he can't produce people to pay for the mortgage, thus making his task like Sisyphus. When it comes to stock HE can be the owner of the claim, via his "PPT" LLC, The President's Working Group on Financial Markets.
oh, they so wish that could be true! As I was walking by the tv with CNBS on at lunch I heard good ole boy Gary Kaminski say that if we really do have a double dip in housing that he HIGHLY doubted any of the big banks had sufficiently modeled their business for that.
All these blow hards saying we are not going to have (or already having) a double dip are the same ones who were adamant that "subprime was contained" and we were not having a recession.
It's ok to say you were watching CNBC. You don't have to act like it was accidental.
And, yes, the same goober-tards are on the TV -- right or wrong they roll on.
if she is found in her running shower with blood trickling down the drain, you will know that she was suppressed in the name of the patriot act....i know some heads will roll over this breach in lying....
I smell a layoff.
I e-mailed Diana early on in the housing crash. After seeing where CNBS was going, I recommended she stick to the numbers, no matter what they are. That's really all CNBS needs to do is get off their agenda and report the facts. Leave their opinions at the door.
"That's really all CNBS needs to do" But... doesn't this somehow imply what their objectives are? Seems they want to retain their FCC license, in which case one needs to understand the big picture (check out Century of the Self, to see what Edward Bernays would do in this case).
Once a long, long time ago, in a land far away -- I think it was about the middle of last year, Kudlow about ripped her head off for reporting the facts (which did not support his outlook). She got ruffled and put his ass back in line using the numbers. Pretty much telling him that the numbers are what they are and she just reports them. I cheered her bravery.
Didn't see the news on MSM(wouldn't since I don't watch it ), about the screwing the 2008 1st time buyers are getting,compared to the '09 1st timers.
The $7,500.00 on the '08's were LOANS,0% interest, due in 14 yrs
Have to be paid back!.
The '09's, were Freebies.NO paybacks, gifts.
The "fine print" always bites ya in the a**.
That... really... sucks.
don't worry, Sad Money Cramer comes to the rescue. Housing is "mixed."
As I've wondered before, what really happens if the banks, the regulators and the politicians all conspire to hold housing at these levels. What does that mean? It could happen. Congress seems willing to shovel money to Freddie, Fannie and Farmer MAC. The banks don't want to take hits. The Fed is allowing insane valuations to post for free money. If the entire system effectively conspires to put a floor under prices, what then?
HUD will own all residential properties in the US. (S.1619 Livable Communities Act of 2009)
"If the entire system effectively conspires to put a floor under prices, what then?"
If? They've BEEN doing it!
The real question isn't whether they can continue, it's when are the wheels, based on physics, going to catch up? As more and more people become unemployed it's quite clear that the weight of trying to hold this beast up cannot hold for much longer.
Atlas ain't just gonna shrug, he's gonna use the earth for a big comfy chair (dare I say a toilet seat?).
And the VIX is screaming HIGHER. Now up 5% on the day with the market in the green. Go Figure.
This suckers goin DOWN
Now at 5.5%.
I mean WTF is goin on here.
When this thing gives way (one way or the other) all hell is going to break loose.
Is called inflation. Think about it, the traditional definition of inflation is too many dollars chasing too few goods. If the banks got all the magic money from helicopter Ben and then used the money to buy bonds and equities you have...drum roll please...too many dollars chasing too few goods (equities). So the market goes up as an effect of inflated dollars been used to buy into the market. This not only makes MaObama look good, but it keeps the CPI down by corralling the magic dollars in the market and not allowing it to flow to consumer goods. For a little while at least. Of course, at some point, the bigger sucker play ends and J6P begins to take profits. At that point the magic dollars flow into the general economy. Result, to quote the great Bill Paxton "game over man, game over"
Diana Olick is the only reporter on CNBS that I listen to in order to get information. All of the rest of them I listen to in order to hear what disinformation they are spinning.
Her and Santelli are the only ones with a shred of credibility. Like you said, the others are assclowns, spewing the required propaganda and bullshit to keep the white house and the Jeff twins (Immelt/Zucker) happy.
+ 1
Is it any wonder then that both of them are relegated to secondary or tertiary duties on CNBC. They are there to lend some credibility to the keepers of the public myth aka Quick, Kernan, Carl baby, Burnett, Hanes, Kudlow, Michelle C squared, Herera, The Queen Bee Bartiromo (with a new book out to keep some more public myths), and of course asshat Cramer.
Nothing will change at CNBC until they get some nontraditionally educated anchors. Joe Kernan is a total Keynesian tool. He actually said the other day that there isn't enough gold to back a currency.
Santelli needs to learn manners if he ever wants to anchor.
Santelli has learned that being stranded down on the trading floor puts you at a marked disadvantage when talking to others sitting quietly with ear pieces that aren't drowned out with back ground noise.
Santelli takes his on air time rather than accept what he's dealt. Add in some righteous indignation and a cheering section behind him and you get Rick baby yelling at idiots. That's you Liesman.
BTW, where is that lying sack of shit Liesman lately? Ops, sorry. Where's my manners? :>)
Hopefully Liesman is now seen as for who he is.....LIES, MAN!
As for Santelli, I am holding a grudge on how he treated Ms. Tavakoli one day on air. I should forgive him I guess.
I agree he's a bit off the deep end at times. When he's charging hard, he winds up barking at the wrong people simply because there's a difference of opinion. At times he's fighting the wrong battle in his effort to win the war. On the other hand, he has no control over his appearances nor what he's fed. So he takes when he feels he can.
Not an excuse, just my explanation for the great Santelli.
Common sense says inflation adjusted home prices should be well below 2001 levels.
Let us say we have a normal supply/demand equilibrium in houses as of 2001, and from 2001 onwards we have created far more homes than were really necessary.
It should stand to reason that the vast amount of excess supply should drive the price of houses well below their 2001 original starting points.
Cramer says that people wouldn't go to home depot or lowes if they didn't think their house was appreciating. I guess he just calls Mr. Fix-it when a repair is needed. I'm not so blessed, when things need to be fixed, I go to these stores and do it myself. Appreciation or not, a leaky roof is not that much fun.
We were just selected to be a "Nielsen Family." I took the two dollars you get for keeping a journal out and threw the envelope away. Ill gotten gains, or ok to use as my downpayment?
LOL
And I feel bad keeping those damn nickels the charities keep sending me in the hope that the guilt will drive me to donate. NOT!
Two bucks is a whole lot of guilt or a whole lot of down payment on that foreclosed McMansion. I say go for it VI. It's the American way to be hopelessly in over your head. Welcome to the hamster wheel. :>)