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Will America Ever Recover From The Housing Crisis - A Real Estate Infographic

Tyler Durden's picture





 

Back in March, on the back of the last gasp of yet another central bank-induced sugar high (in this case mostly LTRO 1+2), as well as economic data skewed by record warmth, a plethora of housing bottom callers (we would call them analysts but they are anything but) emerged from their hibernation and did what they do like clockwork every year: called a housing in bottom. Sadly, now that the market has topped out, at least for the current easing iteration, it appears that the housing triple dip as measured by Case Shiller will shortly be a quadruple dip. And so on, and so on, until the question becomes: will America ever recover from the housing crisis. We don't know, but we do know one thing - fixing an excess debt problem with more debt won't work. Period. Yet that is what continues to be the only "policy" in resolving the aftermath of the Great Financial Crisis. For everyone else seeking a more nuanced answer we suggest perusing the infographic below which provides a less jaded perspective and even has a Hollywood conclusion: "The end is on the horizon"... well, a Tarantino-esque conclusion: "...The distant horizon."

Will America Ever Recover From The Housing Crisis

 


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Tue, 05/15/2012 - 19:14 | Link to Comment Colombian Gringo
Colombian Gringo's picture

What housing crisis? If you are a bankster, you gave out millions of fraudulent mortgages, (especially if you were a democrat with FMNA), were bailed out after the sub prime borrowers inevitably defaulted, and then get to kick out the poor saps and re-sell the homes to other suckers. The banksters became billionaires while millions of americans got tossed into the streets.  How fair is that to the tens of millions of americans who saw their retirement plans go up in smoke when their homes dropped in value like rocks, especially after their  401Ks were also looted by the banksters?

 

Who bails me out when I screw up?

 If we were going to bail out anyone, why not mortgage holders, instead of a criminal cabal who are filthy rich, screwing everyone else for their benefit?

 

Change you can believe in, Fucking Liar!

Tue, 05/15/2012 - 19:16 | Link to Comment old naughty
old naughty's picture

The End is On the Horizon...The Distant Horizon.

This pain is lengthy...And the whole world is in it.

Tue, 05/15/2012 - 20:39 | Link to Comment economics9698
economics9698's picture

Bush was a big supporter of subprime.

Tue, 05/15/2012 - 20:46 | Link to Comment Dr. Engali
Dr. Engali's picture

It's Bushes fault... Got it. Keep telling yourself that, of that's what helps you sleep at night. But here is a dose of reality.... They all loved sub prime, it kept the illusion going for a little while longer.

Tue, 05/15/2012 - 21:20 | Link to Comment EnglishMajor
EnglishMajor's picture

Reagan, Bush, Clinton, Bush, Obama...Permit me to issue and control  the money of the nation and I care not who makes its laws.

Tue, 05/15/2012 - 21:26 | Link to Comment Dingleberry
Dingleberry's picture

Subprime did not cause the crisis. Securitazation plus ratings fraud did. Subprime was just the last to get into the game as all the "good" risks were already done. Subprime was also the first to pop, as it should have been. 

The Fed wants a slow bleed correction vice a deflationary collapse that drags other shit down with it even more than it has already. Therefore, the recovery will take that much longer. How long as the NASDAQ been around 2k????

Tue, 05/15/2012 - 21:47 | Link to Comment smlbizman
smlbizman's picture

it will be over when large swaths of the country are smoldering......

Tue, 05/15/2012 - 22:11 | Link to Comment TheSilverJournal
TheSilverJournal's picture

Housing going down another 70% in real terms. In nominally terms, it will probably never fall from here because of inflation.

When interest rates rise through the roof to make up for the last decade of ridiculously low interest rates, mortgage payments will soar. Also, when the US defaults, Americans will be much poorer.

Tue, 05/15/2012 - 22:31 | Link to Comment AldousHuxley
AldousHuxley's picture

housing is only a worthwhile "investment" if it out paces inflation.

It is basically short hedge against depreciation dollar and that's it.

housing bubbles have 20-30 year cycles.

Too bad boomers are not going to retire off of their shithole home equity alone....your children can't afford it.

 

house is a liability once again.

Tue, 05/15/2012 - 22:44 | Link to Comment socalbeach
socalbeach's picture

Not necessarily true.  Daniel Amerman goes over the numbers in the 70's where real estate didn't keep up with inflation, but if you combined the tax advantages plus the reduction in real mortgage principle due to inflation (a tax free benefit), you could have come out ahead.  I can dig up the link(s) if you or anyone else wants.

Wed, 05/16/2012 - 00:12 | Link to Comment The Big Ching-aso
The Big Ching-aso's picture

 

 

I knew we were in trouble when Habitat for Humanity was putting model home flags out on the weekends.

Tue, 05/15/2012 - 22:31 | Link to Comment fourchan
fourchan's picture

the federal reserve plan is to capture all the assets of the country

and enslave a free people to debt.

97 years after its start and the

program is not only working perfectly, its working too perfectly.

Tue, 05/15/2012 - 22:58 | Link to Comment engineertheeconomy
engineertheeconomy's picture

Tyler gets himself all worked up and spun out like the Tasmanian Devil.

Let me simplify this for you all.

The dotcom bubble was caused by loans. The wall st bubble is caused by loans. The housing bubble was caused by loans, and when they stopped making housing loans, the bottom fell out because loans to the bottom of the economic pyramid create jobs.

Therefore, to fix the problem, if they wanted to, all they would have to do is start making real estate loans again and reverse the process. That would create jobs at the bottom of the pyramid and people would be able to make their payments again.

 THE REAL PROBLEM IS THAT THE BANKS MAKE MORE MONEY IN THE LONG RUN BY FORECLOSING ON OUR HOMES AND THEN RENTING THEM TO US

Also, keep in mind that every loan with interest is fradulent because usury is unpayable. Thats why we have interest rate/foreclosure ratio curves.

Now do you understand Tyler?

Tue, 05/15/2012 - 23:22 | Link to Comment LongBallsShortBrains
LongBallsShortBrains's picture

 THE REAL PROBLEM IS THAT THE BANKS MAKE MORE MONEY IN THE LONG RUN BY FORECLOSING ON OUR HOMES AND THEN RENTING THEM TO US.....

I am no fan of the banks, but if you had to borrow money to buy YOUR home, then it isn't YOURS. If you can't or won't pay the mortgage to which you previously agreed, then maybe renting is the best option for you and the banks.

The problem is with letting the .gov buy these crappy mortgages, creating a moral hazard. If these mortgages had to sell on an open market with no .gov "buyer"', they would be priced appropriate to their risk. A higher credit risk borrower would have to pay a higher rate for a mortgage, thus reducing their buying power. Too bad for the whole country that pricing mortgage repayment risk appropriate to the creditworthiness of the loan applicant be racist n shit......

And some people wonder why there was a bubble......

Wed, 05/16/2012 - 02:18 | Link to Comment ForTheWorld
ForTheWorld's picture

Regardless of whether you borrow money or not to "purchase" a home, there's still that pesky detail of land title. You pay all that money to get the title to the land. It still isn't yours to do what you want. You still keep paying ever increasing property taxes. Why should you pay taxes on something you own? It's absurd.

Tue, 05/15/2012 - 22:27 | Link to Comment cranky-old-geezer
cranky-old-geezer's picture

 

 

They all loved sub prime, it kept the illusion going for a little while longer.

When are people gonna wake up and see it's all about creating more debt. 

More debt is more business for banks.  Bankers make money from loan fees and interest.  Then they make more money from the securitization process.

In the last decade housing was the chosen way to create more debt.  I say "chosen" because everybody at the Fed and everybody in congress was in on it.   Fed made lots of credit availabe and congress forced banks to relax their lending standards to the point where anyone with a pulse could get a mortgage on a $500,000 home.

Banks made boatloads of money from fees and subprime interest, then turned around and made boatloads more money on the securitization side, a brand new thing last decade that doubled or tripled what banks made from those loans and created the biggest securities trading boom in 40 years.

...until it all blew up in '08 when mortgages started defaulting like crazy and all the lending fraud was discovered. 

It was the biggest securities crash in 40 years, nearly bringing the American financial system down.

During the housing debt boom home prices were bid up to crazy levels.  Those prices have to come back down now to 2000 levels before any sort of recovery can begin.

Then they have drop another 50% to get in line with an economy that has collapsed 50%.

This decade the big debt boom is sovereign debt.  But only big banks can play that game, and sure enough, big Wall street banks and making boatloads of money trading sovereign debt securities (after being bailed out when all their housing debt securites collapsed).

And yes that sovereign debt bubble is gonna collapse too.  It already collapsed on MF Global (and cost account holders a billion dollars).  Now it's collapsing on JP Morgan, costing them a couple billion dollars (passed on to taxpayers no doubt). 

Now Greece is fixing to leave the EU and all their bonds are gonna collapse, and it'll start the dominoes falling, then the whole EU thing will collapse and trillions of euros of sovereign bonds will all come crashing down.

It'll spook markets so bad everybody suddenly loses faith in America's $16 trillion of debt bonds floating around out there and they all collapse.

All these debt bubbles collapse sooner or later.

When they collapse, prices that were bid up in the bubble collapse back down to pre-bubble levels.

In the case of housing, banks, real estate agents, and sucker underwater homeowners are trying to prevent that price collapse.

They're gonna fail.  Supply and demand market forces are way too strong.  Demand for bubble-priced homes has dried up, and prices WILL come down one way or another.

Sure, banks can keep boatloads of foreclosed homes off the market a while.  But those empty homes keep losing value as time goes along from not being occupied and maintained.  You're watching the value of your inventory drop further and you'll take bigger losses, so whatever, go ahead, keep 'em off the market, you're gonna lose either way.

Now banks are desparately trying to keep trillions of dollars and euros of sovereign bonds from collapsing.  It ain't gonna work either, especially with Greece starting the dominoes falling.

Debt bubbles always collapse sooner or later.  Always.

You think financial people would figure that out after a while and stop doing these debt bubbles.

But they're too greedy and shortsighted unfortunately.

 

 

Tue, 05/15/2012 - 23:12 | Link to Comment Hubbs
Hubbs's picture

When they created FED, then politicians had a way to get money to pay for their promises, so they could get re-elected. As business grew in this Keynesian fertile window of opportunity (cheap and plentiful fuel, a young poulation, start of the industrial age winding up in the post WWII boom when the US and it's reserve currency status and industrial might made it top dog) businesses became profitable as well, and could afford to buy off the politicians and then even keep more of their profits as they exited overseas.

Two things about politicians: They need 1.)votes and  2.)money to buy votes and their wine, whiskey and whores.

So the FED fiat enabled the politicians to deliver to the public, who could never refuse a free lunch, and politicians were re elected, and became "established" and worthy of  corporations' lobbying.

 

The corporations/wall street fed the politicians. 

 

And that is how facism came to pass.

Tue, 05/15/2012 - 22:36 | Link to Comment Vendetta
Tue, 05/15/2012 - 21:55 | Link to Comment Freddie
Freddie's picture

http://www.youtube.com/watch?v=Yga7TlsA-1A

Maxine Waters and the Dems protecting Fannie and Freddie.

Tue, 05/15/2012 - 22:35 | Link to Comment AldousHuxley
AldousHuxley's picture

most politicians are associated with profits from real estate either directly or indirectly.

 

Money for education and kids = construction projects in their city by firms part owned by themselves while teachers don't get shit.

Low mortgage rates = increase in asset prices of buildings they own

Mega public works = making their owned lands near by appreciate due to government parks, new roads, etc.

 

Wed, 05/16/2012 - 06:48 | Link to Comment BeetleBailey
BeetleBailey's picture

Maxine Waters is a race baiting turd. The side-winding mouth of hers, as well as the hate spewing out of that sewer makes me want to bitch slap the taste out of her lying mouth. Gerymandered to her "''hood" - we will be forced to listen to this bitch for years - unfortunately.

She is emblematic of what ails Congress. A con-artist.

Tue, 05/15/2012 - 22:35 | Link to Comment RafterManFMJ
RafterManFMJ's picture

...and too bad that horizon is an event horizon...by the time you see it, it's much too late.

Tue, 05/15/2012 - 19:35 | Link to Comment PersonalRespons...
PersonalResponsibility's picture

How about no bailout for you or the banks.  Both are wrong.  Sorry.  You fuck up, then you fuck up.  Bailing out you bails out the banks.

Tue, 05/15/2012 - 21:49 | Link to Comment hadriansnightmare
hadriansnightmare's picture

Too late- the stupid govt made the mistake of bailing out the banks (with Paulson pointing a gun to their heads) and now people are waking up to the fact that every 5 year old in the US is now saddled with 100,000 dollars in debt before they even open their first lemonade stand.  The moral compass is spinning and all bets are off for millions of Americans and millions more in the next few years (just wait till the pensions and 401k's get hit)  The new culture thanks to Wall Street is take what you can.  Anybody who makes payments for the next 20 years to get back to even with a securitized trust is just a fool.  I have respect for that guy, but he is still a fool.  Quit paying, cut your deal and move on- works for The Donald every seven years.

Tue, 05/15/2012 - 19:52 | Link to Comment Arnold Ziffel
Arnold Ziffel's picture

 

 

"it's cheaper to rent," Shiller told Business Insider on May 14th. Shiller sees at least 20% further plunge in housing prices due to the 20 year Bubble.

Tue, 05/15/2012 - 20:18 | Link to Comment Bicycle Repairman
Bicycle Repairman's picture

Markets will vary, but many will go down much more than 20%.  And they will never recover.

Tue, 05/15/2012 - 23:46 | Link to Comment Arnold Ziffel
Arnold Ziffel's picture

Bicycle, I was deferring to Shiller, but I agree with you that many markets face a much steeper and longer plunge and I do not see recovery anywhere up ahead.

Some are just beginning to roll over like the Coastal areas of cali (as reported by Dr Huosing Bubble) and Texas (where the Austin Music hall was just foreclsed on).

Lots more pain coming.

Tue, 05/15/2012 - 20:38 | Link to Comment WonderDawg
WonderDawg's picture

I thought I read last year where he was predicting 25-40% further downside. Either way, the bottom isn't in sight yet.

Tue, 05/15/2012 - 21:27 | Link to Comment I should be working
I should be working's picture

Depends on where, some places are cheaper to own, others are not. But mortgage rates are so low and rents are going up. The fundamentals are there, so maybe housing will recover in 3-5 years. Don't hold your breath.

Tue, 05/15/2012 - 23:24 | Link to Comment Dr. Kenneth Noi...
Dr. Kenneth Noisewater's picture

I'm sick of the expense and hassle of moving, I don't want to be subject to rent hikes or other whims of the landlord, and I'm not terribly interested in improving something I don't own (say with cisterns, a gun vault, solar power, food garden + chickens, etc).  I reckon if I can get a 30 year for about the same out-of-pocket as I'm paying to rent now I'd go for that.  That'd be about 1.5-2x my current income.  I'd highly consider an FHA even though I've got 20% socked away as it's subsidized and any cheese I can steal I will, as I learned from the banksters and their idiots in gummint.  The sooner leeches drain the host, the sooner it dies, to be replaced with something more honest.  And when the moochers and eaters riot, time for target practice with my 7x scope!

Tue, 05/15/2012 - 19:50 | Link to Comment Silver Bug
Silver Bug's picture

It will. But it is going to take a very very long time.

 

http://jamesturkblog.blogspot.ca/

Tue, 05/15/2012 - 20:19 | Link to Comment Seer
Seer's picture

Here we go again with pointless bashing of the POTUS.  Still pissed because McCain didn't sit his ass on the throne?

Anyway... this is the System's eventual conclusion.  With all the people who read the bible I'd think that it should be pretty clear that this shit ain't new, and that the word "Jubilee" had some realistic meaning.  Ain't going to make debt draws on the future disappear: we'll eat these debts as a society; the reason being is that if they fall on who they should fall (which I'd agree is morally proper) it would toast things such that you wouldn't recognize them, assuming that you don't get scorched (in to oblivion) yourself.

We all took part in this bad game.  If you even so much as mouthed "growth is good" you're part of this lunacy.

You're wanting a greater slice of the fiat (invisible) pie?  You wanna BE like THEM?

I've lived better than the overwhelming majority of humans on the planet (who subsist on $3/day or less), and the overwhelming majority who have EVER lived on the planet.  The party's over.  The pinata's whacked and there were very few pieces in it, and all are likely only good for the creation of cavities.

What's the phrase??? oh, yeah, who said that life was fair? (again, refer to the overwhelming masses on the planet and cry that tear)

Tue, 05/15/2012 - 21:19 | Link to Comment oldman
oldman's picture

@seer

de acuerdo

minimalists do it with less

but, say what?    Life is not fair?  Now, what do I do with my time?

Oh yeah, I remember-------do nothing!

Thanks for the joy in your rant         om

Tue, 05/15/2012 - 22:05 | Link to Comment Nigh Eve
Nigh Eve's picture

I agree.  These cycles last about 3 generations.  Hence, the year of Jubilee was set at intervals of 49? or 50? years.

As an aside... In my opinion, I think the intent of the year of Jubilee was more about creating a disincentive to lend during the last few years prior to the Jubiliee year (in contrast to merely forgiving indebtedness).   In other words, it was a pre-established time-table for credit contraction.  {However, I admit that I am not a scholar in this topic.}

Nevertheless, the problem (credit expansion / debt expansion cycle) has existed for as long as civilization has existed.   

Wed, 05/16/2012 - 01:13 | Link to Comment valkyrie99
valkyrie99's picture

To my readings jubilees did create a disinsentive to lend torwards the end of the term as you say and did have some intention of checking usuarous credit contracts as well as to help the poor. 

I would say mesopotanian societies were free from credit bubbles as thier largest means of exchange were ox/wheat, which had natural limits on how much they could be concentrated amount the creditor class and reproduced which made inerest payment a lot easier. Additionally, credit bubbles seemed not to occur much in early full reserve banking systems through Greece and Rome; although as wealth and power concentrated the common people did become debt slaves it seemed to be a steady process without speculative price distortions.  It wasn't until fractional reserve banking where banks can expand and contract the money supply was born that we start to see the Tulip bubble, the south sea bubble, and the first great crashs we know of. 

Tue, 05/15/2012 - 20:30 | Link to Comment Buck Johnson
Buck Johnson's picture

This is going to hurt the US big time.

Tue, 05/15/2012 - 20:32 | Link to Comment LetThemEatRand
LetThemEatRand's picture

Really?  It's the Blue Team's fault primarily?   Come on.  Like the NFL that could give a shit who wins the Superbowl, the banksters own both the Blue Team and the Red Team.  They divide us by making us think one or the other is to blame for this shit.  The only change you can believe in is to stop playing their game.

Tue, 05/15/2012 - 20:40 | Link to Comment WonderDawg
WonderDawg's picture

Hey, we agree on something!

Tue, 05/15/2012 - 23:54 | Link to Comment FrankThinkTank
FrankThinkTank's picture

Says the guy who pulls the partisan card out when it's convenient.

 

Tue, 05/15/2012 - 20:54 | Link to Comment DavosSherman
DavosSherman's picture

Change you can believe in, Fucking Liar!

Google this headline, the only change was which bank replaced which bank as WH Chief of Staff, (running the joint---into the ground):

 

Obama has up to $1 million with JPMorgan Chase

Tue, 05/15/2012 - 21:51 | Link to Comment Tapeworm
Tapeworm's picture

I am a cheap SOB. I bought a house for my second daughter that cost less than 20% of the goomint assessed value. I dumped in enough dough to get it up to 45% of the assessment.  THE PREVIOUS SALES WERE OBVIOUS FRAUDS IF ONE LOOKS AT THE PROPERTY> f'in keyboard.

 I bought another that will pay itself at present rents in seven years. That was another fraud on the last sale.

 In this area (SE Wisconsin) it is easy to find nice accomodations for less than thirty ounces of gold, and that includes a fair amount to fix it up to nice enough standards with floors and carpets. A kilo of glod bought at 9500 will get you a solid house that has been repaired to good standards, and a considerable chunk of change to boot.

 These local pols are going to have a tough sell on their refusal to cut back on goomint promises to their employees. If houses sell on the open market for far less than half of their assessed value there will be big problems wuth the taxcows.

 Bring it on!

Tue, 05/15/2012 - 22:05 | Link to Comment Tapeworm
Tapeworm's picture

I also got a decent 9mm auto pistol with conceal holster for my daughter that I included in my cost basis for her house. Including that and all other expenses of the house still makes it less than one half of the assessed value. The makeover of the house has all new floorings and eaal repairs where neccessary in a 108 year old house. It is really quite nice now, and far better than anything that I rented as a twenty something.

 My total in it comes to under 50k on a house that sold for 129k(fraud-GMAC) in 2008. How's that for collapse?

Wed, 05/16/2012 - 08:06 | Link to Comment sessinpo
sessinpo's picture

Colombian Gringo                       2429419 

What housing crisis? If you are a bankster, you gave out millions of fraudulent mortgages, (especially if you were a democrat with FMNA), were bailed out after the sub prime borrowers inevitably defaulted

 

Comment:

I agree with what I think should not happen, bail out of banks for malinvestments whether it is derivatives or mortgages. However, I disagree with fraudulent mortgages. At some point the consumer, the buyer of the house and taking on the mortgage liability has to take some responsibility. Even if I only make $20K a year and get approved for a $500K house with no down payment. I must realize I am taking on more than I can handle and on the flip side, the bank should have so suffer for offering me a loan.

Tue, 05/15/2012 - 19:06 | Link to Comment Council of Econ...
Council of Economic Terrorists's picture

The sheep were slaughtered.

Tue, 05/15/2012 - 23:27 | Link to Comment Moon Pie
Moon Pie's picture

Pigs are slaughtered...

Tue, 05/15/2012 - 19:07 | Link to Comment RmcAZ
RmcAZ's picture

Bank of the Internet? Sounds legit.

Wed, 05/16/2012 - 01:47 | Link to Comment JohnKozac
JohnKozac's picture

 

 

"Bank of the Internet? Sounds legit."

 

Yeah, sounds ok...it's Central Office is in Nigeria. What can go wrong?

Tue, 05/15/2012 - 19:07 | Link to Comment Debtless
Debtless's picture

I bet the oncoming currency crisis will make people forget about the housing crisis.

Tue, 05/15/2012 - 21:29 | Link to Comment I should be working
I should be working's picture

Yeah because the dollars they owe on their mortgage in will be carted around in wheelbarrows. The housing crisis will be over once the currency has been diluted to worthlessness.

Tue, 05/15/2012 - 19:07 | Link to Comment MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

"housing in bottom"

"Well, it's a nice roomy place -- but there's a strange odor!"

Tue, 05/15/2012 - 19:08 | Link to Comment jarboejl
jarboejl's picture

I was smart or lucky...whatever.  Either way, I told my wife to SELL and that a 110% profit on a condo in 3 1/2 years is retarded and that it ain't coming back.  I knew it would at least correct, if not crash, just by knowing what my newer neighbors did for a living.  There was NO WAY they could afford one of those condos, not one!  So we sold out in Dec. 2006, rented until 2010, bought again and just refied @ 3.75% 30yr fixed.  I'm gonna be here a while, so what do I care...

Tue, 05/15/2012 - 20:16 | Link to Comment Withdrawn Sanction
Withdrawn Sanction's picture

Sometimes when you catch falling knife, you get lucky and grab the handle....congratulations.   So, how are the neighbors?

Tue, 05/15/2012 - 21:29 | Link to Comment I should be working
I should be working's picture

Falling knife? More like jumping in front of a slow motion train wreak.

Tue, 05/15/2012 - 22:56 | Link to Comment socalbeach
socalbeach's picture

If you had financed 100% of the purchase price plus fixup costs, it would be interesting to know whether your total monthly expenses (excluding loan principle reduction) would be less than or equal to what the rent would be.  If yes then you probably made a wise financial decision, because that doesn't even take into account the tax deduction for interest payments that you get, or the slightly lower interest expense each month.  Of course rents could go down but they're not here (S Cal beach areas).

Tue, 05/15/2012 - 19:09 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

People just don't get it.

Oil scarcity defines all this stuff.  People will die.  If they die fast enough, there will always be too many houses.

This misery is forever.

Tue, 05/15/2012 - 19:20 | Link to Comment Ident 7777 economy
Ident 7777 economy's picture

 

 

That's cheery; thanks Obama (re: Keystone Pipeline, Gulf drilling moratorium et al)

 

 

Tue, 05/15/2012 - 20:29 | Link to Comment Acorn10012
Acorn10012's picture

Trav, is that you?

Tue, 05/15/2012 - 20:39 | Link to Comment Seer
Seer's picture

No, if there was anything that Trav was knowledgeable about it was oil/energy.  This person is the complete opposite (suspect heavy Party Pussy influence, sigh).

Tue, 05/15/2012 - 20:39 | Link to Comment Seer
Seer's picture

Yeah, we've already stolen gobs from the future, I think we need to see if we can suck as much oil out of the ground as fast as we can to ensure that there is ZERO chance of ever creating any kind of floor on this.

BTW - If the govt that you're bashing wasn't subsidizing the shit out of oil it would be just as good as scarce (and, as is quite typical of the deniers, any oil produced would be placed on the open markets- fat chance that this would do anything for massively unemployed and massively in debt Americans).  But, hey, if your such a fan of big oil then maybe you can just write them some checks?  Kind of feel sorry for them...

Wed, 05/16/2012 - 08:15 | Link to Comment sessinpo
sessinpo's picture

No need to feel sorry for anyone. Oddly enough, the latest reports suggest more oil in the ground then ever before. Oil companies don't get any more subsidizing then other manufacturing companies - that is all leftist propoganda. Environmental doomsayers are just as bad as economic doomsayers.

 

 

Tue, 05/15/2012 - 19:08 | Link to Comment navy62802
navy62802's picture

If the government hadn't intervened in the housing market to interrupt the correction in prices, we may well have been on the path to a housing recovery by now. Or at least started down the right path. Instead, housing prices are relatively stalled about halfway to the bottom right now. They slowly leak lower, month by month. Thanks to government intervention, the housing crisis is going to be long and drawn out, with worse impact on the overall economy than if they had simply allowed the market to have a natural correction.

Tue, 05/15/2012 - 19:16 | Link to Comment crawldaddy
crawldaddy's picture

yep, if the govt would of gotten out of the way, Let the big banks fail, tossed in prison a few thousand bankers, put some real agents in tthe SEC, we would be booming right now.

Tue, 05/15/2012 - 19:58 | Link to Comment eatthebanksters
eatthebanksters's picture

Bailing out the TBTF banks only gave them the staying power to prolong the misery...FUCK YOU GEITHNER!!!

Tue, 05/15/2012 - 20:27 | Link to Comment Freebird
Freebird's picture

Fucking A. I gave 3 respective upticks here.
The pain should have been taken there & then & no this is not with hindsight.
Anyone read their 1920-21 US crisis, the effect & the solution?

Tue, 05/15/2012 - 20:45 | Link to Comment Seer
Seer's picture

It was always a runaway steamroller.  While I would agree that the main actors should have taken the direct and immediate hit, I have no illusion that this thing would have stopped rolling.  This is a MAJOR paradigm change in civilization, underwritten by physical scarcity.

As I noted above, the party's over.  Had some good times.  Now the real hard work begins: I've already committed to it.

Tue, 05/15/2012 - 21:08 | Link to Comment Freebird
Freebird's picture

Stopped rolling? Ok. However, bail-outs should have been the exception not the rule & with full transparency blah blah blah

( Chilling Hank mofo? )

Tue, 05/15/2012 - 21:46 | Link to Comment Omen IV
Omen IV's picture

you are a promoter and a propagandist - the government diidnt delay the correction in prices -  the banks committed systemic fraud - end to end - since the CDO's were sold with misrepresentations and were subject to buybacks in certain cases due to the fraud  - the banks stonewalled the foreclosure process until they could put in place a wall against their liability

nothing else is responsible for the delay in pricing correction other than fraud avoidance by the banks

Tue, 05/15/2012 - 22:47 | Link to Comment Freebird
Freebird's picture

Mmm, moi? Promoting? Promoting what? Agreeds the banks are a bunch of cunts - just saying recourse loans may have assisted in responible citizens being, well, responsible. No?

Tue, 05/15/2012 - 19:10 | Link to Comment Chartist
Chartist's picture

ok, can we agree that from now on, all discussion about housing oversupply must exclude inventory from the state of Michigan...I think by now we can agree that Michigan ain't coming back.

Tue, 05/15/2012 - 19:17 | Link to Comment Dr. Engali
Dr. Engali's picture

I don't know about that. China will be buying up sections of Michigan

http://endoftheamericandream.com/archives/china-wants-to-construct-a-50-...

Tue, 05/15/2012 - 20:35 | Link to Comment Acorn10012
Acorn10012's picture

The European experiment in the USA is coming to an end. Lets see what the blacks, Latinos, and Chinese have up their sleeves.

Tue, 05/15/2012 - 21:01 | Link to Comment Marginal Call
Marginal Call's picture

Michigan has a lot of what the rest of the country is about to be short of.   Places like Arizona and Vegas are going to turn to dust without it.  Michigan will survive.

Tue, 05/15/2012 - 22:07 | Link to Comment Taint Boil
Taint Boil's picture

 

 

I am here in Michigan and we got 11 new houses going up right now, right down the road from me. Yeah, I know I can't believe it but true. Detroit - well you can buy a house for a dollar.

Tue, 05/15/2012 - 19:09 | Link to Comment Dr. Engali
Dr. Engali's picture

What's this have to do with Facebook ?

Tue, 05/15/2012 - 20:53 | Link to Comment Seer
Seer's picture

Don't ya know that "business" will save us all?  We're talking about a non-govt entity that can make a lot of... well, they're going to have big numbers on Wall Street so, everything will be fixed because people will buy stock and be rich and be able to buy houses and eat lots of Skittles and ride unicorn ponies and...

Tue, 05/15/2012 - 19:10 | Link to Comment blunderdog
blunderdog's picture

Just because it sucks to own a recently-purchased house NOW doesn't mean the real-estate market is "bad for America."  There are plenty of us who've never bought a house.  We're just fine.  Something bad for some group of people isn't necessarily bad for the entire country.

Incidentally: you don't "reign in" spending.  You "rein in" spending.  Although I guess considering this is done up in colorful pitchas means the audience it's intended for probably won't notice.

Tue, 05/15/2012 - 19:43 | Link to Comment iDealMeat
iDealMeat's picture

+1, That, and the two 5's on the Top 5..  FAIL...

Tue, 05/15/2012 - 20:36 | Link to Comment Landrew
Landrew's picture

Housing matters being 40% of the economy for the last 40 yrs! So instead of building and furnishing homes the jobs are part-time without benifits fast food! Great jobs if you have six of them!

Tue, 05/15/2012 - 20:58 | Link to Comment Seer
Seer's picture

One need only weather the storm.  It's quite possible that after the storm there will be little interest or capacity to collect mortgages.  I consider all these angles and hedge accordingly.

I used to have a house, now I have a home (with Ag property).

Tue, 05/15/2012 - 22:19 | Link to Comment Tapeworm
Tapeworm's picture

the reighning clot reined his horse when the rain made the footing slippery.

 Sir Douglas Quintet

http://www.youtube.com/watch?v=2KlLKuJpTgM

Tue, 05/15/2012 - 19:12 | Link to Comment Nussi34
Nussi34's picture

Ehx don´t they start brothels in the nice empty houses with cheap hookers from the EU PIGS?

Tue, 05/15/2012 - 19:12 | Link to Comment davood
davood's picture

Realistically? Try after WW3.

In the meantime while there is still time . . . EscapetoPatagonia.com.

Tue, 05/15/2012 - 19:13 | Link to Comment crawldaddy
crawldaddy's picture

what also is a small wildcard is that these upcoming generations of kids, while tech savy are not the most get their hands dirty and buy a house to fix up.  For sure there are still a percentage of them that are, but that percentsage shrinks every year.  These kids are spolied, they were brought up in a throw away society, if it broke you threw it out,  hell many of us older peeps were brought up in a " if it broke you fix it" society.

If you ask a class of college kids today how many of them had ever changed a tire, these days hardly a hand goes up, in the past, hell who hadnt changed a tire.  So we really think these kids are gonna jump in and redo floor boards, rewire, do some plumbing, and all the other shit some of us older guys tackled?  

Tue, 05/15/2012 - 19:32 | Link to Comment kekekekekekeke
kekekekekekeke's picture

eh, I don't know.  Our father is white collar and so NOT handy but my kid brother remodeled a house all on his own at 18 using what he learned on youtube

Tue, 05/15/2012 - 19:44 | Link to Comment Confused
Confused's picture

So how many "kids" have you taught to do these things? 

 

If you aren't part of the solution, then you are partly responsible for the problem. 

Tue, 05/15/2012 - 20:35 | Link to Comment midgetrannyporn
midgetrannyporn's picture

The tires back then sucked ass. Many young people have never had a flat.

Tue, 05/15/2012 - 20:58 | Link to Comment scatterbrains
scatterbrains's picture

speaking of tires and youtube.. this dude is bad ass old school right here.  When shit go Argentina  best have your skills in order...

http://www.youtube.com/watch?v=2nQy-e6fvjI&list=FL79w6RRRDhwgNa25K2OweIQ...

Tue, 05/15/2012 - 21:30 | Link to Comment Stuck on Zero
Stuck on Zero's picture

If you ask kids today about changing a tire they'll hold up their Droids and say there must be an app for that.

Tue, 05/15/2012 - 23:34 | Link to Comment Sam Clemons
Sam Clemons's picture

There is a reason people don't learn rudimentary tasks any more.  It's called division of labor.  Adam Smith wrote extensively about it.

I have needed to do some of the stuff you list above, and I taught myself to do it pretty easily.  Don't put yourself on a high horse because you can "do some plumbing."

 

Tue, 05/15/2012 - 19:15 | Link to Comment ghostzapper
ghostzapper's picture

Continued slow drip until about 2020.  Ultimately the U.S. will have to open up the floodgates on immigration and start trucking them in based on their financial status.  The one trump card the U.S. actually does have is that there are a few hundred million people that would move here if they could.

 

Now, having enough natural resources well that's another topic

Tue, 05/15/2012 - 20:25 | Link to Comment Bicycle Repairman
Bicycle Repairman's picture

Check your assumptions.  America may not always be the immigrants' choice.  I note that the Mexicans are bailiing.

Wed, 05/16/2012 - 07:18 | Link to Comment ghostzapper
ghostzapper's picture

Mexicans maybe lowering their enthusiasm for the U.S. in the short run due to the employment situation.  But that won't last forever.  My point is that in the grand scheme of things there are plenty of people that want to come to the U.S.  After the coming collapse the U.S. politicians will use immigration policy to try to revive the economy.  Believe me I know the U.S. has a shitload of issues but we do have this "trump card" relative to ther countries.

Tue, 05/15/2012 - 21:14 | Link to Comment Seer
Seer's picture

"Ultimately the U.S. will have to open up the floodgates on immigration and start trucking them in based on their financial status."

Measured in fiat?  Hm... I'm thinking that this is a bit more widespread than just the USofA.

Tue, 05/15/2012 - 19:16 | Link to Comment Yen Cross
Yen Cross's picture

We need 3-5 more Dimonite (F**k ups). Then the banks just fail, and the ( synthetic aka CDO/CDS) market flushes the shadow R/E out of the banking crapper

  That is, unless the Synthetic market trys for a bailout? The same douche bag banks that hold the collateral (R/E), are the ones that cross collateralized it!

Tue, 05/15/2012 - 21:14 | Link to Comment Seer
Seer's picture

I think that at this point everyone will have turned and walked away from this insanity... civilization as we know it will be judged poison.

Tue, 05/15/2012 - 19:18 | Link to Comment Let The Wurlitz...
Let The Wurlitzer Play's picture

I have said this before the "red flag" for the housing bottom will be when the 30 year mortgage is above 10% for a prolonged period of time.  And not a day sooner.

 

 

Tue, 05/15/2012 - 20:26 | Link to Comment Bicycle Repairman
Bicycle Repairman's picture

That sounds about right.

Tue, 05/15/2012 - 19:18 | Link to Comment BurningFuld
BurningFuld's picture

Hey good prediction Zillow. I predict that as long as the balance of trade is over $50 Billion a month to the negative and the USA is being drained of it's money like a freshly slaughtered cow house prices will continue to go down down down.

Tue, 05/15/2012 - 19:17 | Link to Comment Bay of Pigs
Bay of Pigs's picture

FUBAR

Tue, 05/15/2012 - 19:20 | Link to Comment Seasmoke
Seasmoke's picture

i am having a hard time believing there are 5 million behind one month but 8 million behind 2 months or more.......no way 30 lousy days is saving the 3 million difference

 

STOP PAYING YOUR MORTGAGES !!!!!

Tue, 05/15/2012 - 19:35 | Link to Comment kekekekekekeke
kekekekekekeke's picture

this stuff is scary as shit for me.   I'm 26 and thinking about settling down and popping out a few kids in the next couple of years, my boyfriend is so pro-home ownership and I can see some benefits (mostly... installing tornado shelter as we live in tornado alley) I mean I KNOW buying is a bad idea now but I might only be able to talk him into renting for 1 year 2 years max.  I'd rather just hold out til a monster box gets a house

Tue, 05/15/2012 - 20:47 | Link to Comment fonzannoon
fonzannoon's picture

Ha trying being 36 with a kid and a house you bought in the northeast in 2007. Talk about being totally fked!

Tue, 05/15/2012 - 21:18 | Link to Comment Seer
Seer's picture

Do what you have to do.  Be aware, however, that there is, although I couldn't give any usable probabilities, a chance that the mortgage collectors one day no longer show up.  Yeah, it's a small light, but at least it's a light.

Tue, 05/15/2012 - 19:38 | Link to Comment Bunga Bunga
Bunga Bunga's picture

In hundred years from now we will be laughing about this.

Tue, 05/15/2012 - 19:42 | Link to Comment Yen Cross
Yen Cross's picture

And poppin Viagra! +1

Tue, 05/15/2012 - 20:10 | Link to Comment Mr. Fix
Mr. Fix's picture

Why wait?

Tue, 05/15/2012 - 19:37 | Link to Comment e-man
e-man's picture

All real estate is local, until it isn't.  Just like the bubonic plague.

Tue, 05/15/2012 - 19:50 | Link to Comment e-man
e-man's picture

Just as a matter of reference, I recently went to look at an REO property in my area (Southern California).  Sold for $1.05 M just near the top of the bubble.  Lender foreclosed late last year.  Current asking price is $1.2 M and the property went pending in about 2 weeks.  And in normal times, the property was around $350-400K.  Bubble?  What bubble?

Tue, 05/15/2012 - 21:45 | Link to Comment GrinandBearit
GrinandBearit's picture

I lived in So Cal from 2001-2009.  I watched the entire housing bubble, top to pop.  People who live there seem to LOVE overpaying for homes.  The So Cal RE market dropped, but it never did hit rock bottom.  Why? 

  • All government cheese/intervention is keeping it propped it up.
  • Banks have a very large amount of shadow inventory on their books. 
  • There are still a lot of flippers in that market. Hard to believe, but it's true. 
  • Lots of rich people who have nothing better to do with their money.
  • Many new buyers truly believe the worst is behind us.  
Tue, 05/15/2012 - 23:06 | Link to Comment Vendetta
Vendetta's picture

yep.  I bought a house in 2001 in Oregon for $169k, sold for $253k in 2006, it is 'valued' recently on zillow (only somewhat useful, a RE marketing tool) for $437k.  I guess they put solid gold toilet seats in the bathrooms.  Utter nonsense

Tue, 05/15/2012 - 19:41 | Link to Comment world_debt_slave
world_debt_slave's picture

only when the Fed stops artificially inflating house prices and the average joe can afford a house on his lowly wages 

Tue, 05/15/2012 - 20:05 | Link to Comment dwdollar
dwdollar's picture

Amazing what sound money and free markets can do if given a chance.

Sat, 05/19/2012 - 13:31 | Link to Comment dizzyfingers
dizzyfingers's picture

Home prices are inflated in the local taxing district Dude. It has to do with how much in salaries, benefits, and pensions for school workers, municipal, township, and county workers is needed each year. Has nothing to do with value, but with collecting enough so that all those union workers get paid and get their bennies.

Tue, 05/15/2012 - 19:45 | Link to Comment The Watchman
The Watchman's picture

Bullish on Bulldozers and Wrecking Ballz!

Tue, 05/15/2012 - 19:46 | Link to Comment Yen Cross
Yen Cross's picture

 O/T. I'm seeing a slight correlation shift in eur/aud & gbp/aud.  Could be signal. Aud bond yields are "bund" like. ACB's have been interveining on the strong (usd). India and Indonesia.

   Could be a relief rally, and short covering through Friday.

Tue, 05/15/2012 - 19:51 | Link to Comment Golden monkey
Golden monkey's picture

But but if I move at nighttime in one of those empty houses in the US (1 out of 10?), the f, I mean the good neighbor will call the drones in!

So so, the neighbor is working for the bankster... 24 hours a day if he's a slave (I mean, if he hears some noise at nightime he will... just call BAC)

So so since the bankster is a good boy, the neighbor is a very (very) good boy...

How does it feel to be a good man?

Tue, 05/15/2012 - 20:15 | Link to Comment Yen Cross
Yen Cross's picture

 Is this a trick question?  Possibly a lack of financial skills?  You get "Monopoly for X-Mas."  Tell ya Moma, to put ya on vitamins!

Tue, 05/15/2012 - 20:48 | Link to Comment Freebird
Freebird's picture

Flipped again Yen Bitch?

Tue, 05/15/2012 - 22:05 | Link to Comment Yen Cross
Yen Cross's picture

 Keep ya eyes open! No need for name calling.

Tue, 05/15/2012 - 19:51 | Link to Comment Peter Pan
Peter Pan's picture

What housing crisis? A housing crisis to me is one where there aren't enough homes to house people. What America has is a homelessness crisis and a financial crisis.

If one in ten homes is vacant and the unemployment rate is 10% could we be smart enough to make the link between the two and recognize the problem for what it is? More jobs and better jobs is the nub of the crisis.

Tue, 05/15/2012 - 20:12 | Link to Comment mendolover
mendolover's picture

Not if you know who gets re-elected.  But also if anyone is handy, there is money to be made managing this places.  Get registered on a Field Inspectors website and 'they' will call you.

Tue, 05/15/2012 - 21:24 | Link to Comment Seer
Seer's picture

"More jobs and better jobs is the nub of the crisis."

BUT!  People are STILL in debt.  Who is going to afford the stuff created by the "more and better jobs?"

Tue, 05/15/2012 - 19:56 | Link to Comment bob_dabolina
bob_dabolina's picture

Chances are if you're on food stamps like 45 million Americans, or 15% of the population, there most likely isn't a housing a crisis.

No home, no crisis...I knew our politicians would find a solution.

Tue, 05/15/2012 - 20:04 | Link to Comment benkei54
benkei54's picture

Real Estate still is local. In Phoenix there is a squeeze on product below $400,000 and prices are rising.  Often see multiple offers on decent homes.  Homebuilders are actually starting to ramp up and there is a lot of activity.

Re-inflate!!!  At some point Larry Yun will get something right.

 

Tue, 05/15/2012 - 20:09 | Link to Comment Alpacanio
Alpacanio's picture

With all the people being shut off from unemployment over the next 3 months. Plan on a lot more defaults.

And for those of you who want a new home. Unless you got ta lot of cash to put down, good luck on the banks giving you a loan.

Tue, 05/15/2012 - 20:09 | Link to Comment CashCowEquity
CashCowEquity's picture

bottom in 2033, as per Martin Armstrong

Tue, 05/15/2012 - 21:25 | Link to Comment Seer
Seer's picture

I don't think that he'll be around then, so it's a pretty safe bet for him.  At any rate... yeah, no relief in sight for a LONG time, if ever.

Tue, 05/15/2012 - 23:27 | Link to Comment Vendetta
Vendetta's picture

home prices will stabilize and bottom within a year of failures of a couple of the biggest banks.

Tue, 05/15/2012 - 20:14 | Link to Comment Peak Everything
Peak Everything's picture

Another fucking idiot. What crisis? Falling house prices are a good thing. More people will be able to afford a home.

Tue, 05/15/2012 - 20:46 | Link to Comment PeaceLover
PeaceLover's picture

well kind of one of my brothers is a A**hole..

Loves war machine and thinks drones are cool.  :-(
He is also a landlord.

But he lost on paper.. Millions in the last two years but he brags his cash flow has never been better RENTS are higher everymonth.

And he expects to pickup.. 500 to 1500 more units this year.

He can  most of us can't but the fat cats are winning this game..

Everything he has bought in the last two year rents for more than the payments..

Like he said even if it drops another 25% his rents will still off set it.(I don't know if that true)

It's real. the down side is there is work involved with rentals.
The bubble was much easier.

PL

welcome to American where the politician fill there pockets and if they don't get elected for a second term the banks fill there pockets at there new job.

Tue, 05/15/2012 - 20:15 | Link to Comment george
george's picture

It was difficult to tell what you were trying to emphasize with your graphs. They were pretty though.

Tue, 05/15/2012 - 20:16 | Link to Comment zerotohero
zerotohero's picture

Ain't no crisis - this is the new norm is all - get used to it.

Tue, 05/15/2012 - 20:19 | Link to Comment Jim in MN
Jim in MN's picture

 

No, we will never recover, because of CORRUPTION

Case in point:  Obama's bulging JP Morgan account.

http://news.yahoo.com/blogs/ticket/obama-financial-forms-show-big-jp-morgan-account-213119081.html

 

Tue, 05/15/2012 - 23:45 | Link to Comment Sisyphus
Sisyphus's picture

WTF, did you notice this.

The annual peek into the Obamas' finances showed that the president held between $1,000,001 and $5,000,000 in U.S. Treasury Notes, generating between $5,001 and $15,000 in interest. They also held between $500,001-$1,000,000 in Treasury Bills.

If the economy is recovering, as he says it is, and everything is coming up roses, as he says it is, and jobs are also being created, as he says it is, shouldn't he be invested in Shtick Market and be prepared for the moonshot. At least, he should have bought Apple. He is in Notes and Bills. I wonder what he knows that we do not know, which is making him risk averse. Hmmmm!!!

 

 

Tue, 05/15/2012 - 23:53 | Link to Comment Vendetta
Vendetta's picture

His pals are running the joint and he's risk averse

Tue, 05/15/2012 - 20:22 | Link to Comment youALREADYknow
youALREADYknow's picture

How will you know when the real estate bubble has REALLY popped? When the FHA stops insuring loans above the median price like they have since the crisis began.

This is the true unspoken factor which has propped up prices in every market where the unemployment rate hasn't spiked high enough to sap demand. As long as Joe Blow can come in with less than 5% down and walk into a $600k house, the prices will stay artificially elevated and foreclosures will continue to be backlogged. There's an obvious trend to support this theory... check RE prices from 2009-present on homes ranging from 100% of median up to the new FHA loan limits and you'll find that they have barely gone down at all. The price declines have been on low cost homes (aka unwanted inventory) and high cost homes (that few can afford with cash or conventional private loans). Right now, everything in the market up to $625k is artificially inflated which means the rest of the market has fallen into place around that bracket.

Tue, 05/15/2012 - 20:22 | Link to Comment Antifaschistische
Antifaschistische's picture

just wait until practically every state in the US accepts that it's broke, alone with local municipalities and numerous school districts.  When property taxes have to double, housing prices will further decimated.   Sure, buy that "average" home you always dreamed of...and pay $14,000 per/year in taxes.   Now figure out how much you can pay on a mortgage and calc the price of the home you can buy at the given interest rate.  Bingo...you'll be able to pay about $23,000 for the home.

Welcome to the future.

Tue, 05/15/2012 - 21:40 | Link to Comment moondog
moondog's picture

That sounds like NY state now.

Even upstate NY has taxes of over 10K a year on a good percentage of properties (we're talking $300,000 properties, not mansions).

We must be the test market for the NWO.

Tue, 05/15/2012 - 20:24 | Link to Comment Yen Cross
Yen Cross's picture

5 hour (dxy) . What happens when all those long trades get blown out? http://www.forexpros.com/quotes/us-dollar-index-advanced-chart

Tue, 05/15/2012 - 20:28 | Link to Comment HungrySeagull
HungrySeagull's picture

Want recovery? Fine. Here is my take:

1- Bring in CAT D9 and demo all housing in foreclosure (They have been stripped or close to condemnation...) Bare grass lots to resell for new construction of any kind.

2- Burn the Bullshit piles of paper that we make Buyers suffer through.

3-STOP reselling the stupid mortgages. You lend the money, YOU own the house and keep it RIGHT HERE in the USA. No wall street piggy bank for you.

4- Customer to pay off mortgages within reason. Keep that simple.

5- Anyone who is underwater, they need to take a existing home free and clear and leave the mansion they bought knowing that they could not afford.

6- If a new house sells for 10,000 dollars. SO be it. Sell the goddamn thing and move on. Quit trying to hold out for whatever you think is the righteous values.

7- Stop building specific types of housing to attract rich people for income. Build them across the board for ALL walks of life.

8- Start incorporating solar and safe rooms etc into the homes. Avoid having to import materials to build said home.

9- Help the homeowner replace obselete stuff (Electric motors over 5 years old.) and make good on new technology to ease the load on the bills.

10- Stop trying to chase after taxes or estate/probate issues. If the surviving kin wants the home after someone passed on, by all means give it to them. A home that is occupied generates income for all levels of Government.

And eliminate phone trees and call centers.

Disclosure.. we are paid off, free and clear with a tiny revenue tax each year. *Blows Rasberry.

Never again will we buy a home borrowing money. Never again.

Tue, 05/15/2012 - 21:29 | Link to Comment Seer
Seer's picture

Minor detail- everyone's massively broke.

This idea of leveling and rebuilding, hm, seems I've heard it mentioned before...  I'm just not convinced.

Tue, 05/15/2012 - 23:40 | Link to Comment Vendetta
Vendetta's picture

Agree.  Wasn't Erin Burnett calling for demolition of housing to 'improve' the economy?  The cash for clunkers program was a wealth destruction and debt accumulation event .. Get people into new debt with financed new cars and destroy older but repairable running cars and cut off new supply to used car market by destroying the engines.  Such stupidity... all for the bankers with a few months of new production for manufacturers

Tue, 05/15/2012 - 20:29 | Link to Comment Yen Cross
Yen Cross's picture

 FX dealers are hedged & margined!  I have a tough time shorting commodities at a " par" to their currency counterparts

  People need to eat, and deliveries need to be made!

Tue, 05/15/2012 - 20:32 | Link to Comment max2205
max2205's picture

Most of us could be dead in 674 days (DTF)

Tue, 05/15/2012 - 20:37 | Link to Comment Father Lucifer
Father Lucifer's picture

Bring out your dead.

Tue, 05/15/2012 - 20:43 | Link to Comment Yen Cross
Yen Cross's picture

 You're killing me.

Tue, 05/15/2012 - 21:36 | Link to Comment moondog
moondog's picture

I'm not dead!! I'm getting better!!

Tue, 05/15/2012 - 20:37 | Link to Comment Freebird
Freebird's picture

One of the biggest fckups in the US is non-recourse.
Jesus wept.

Tue, 05/15/2012 - 20:41 | Link to Comment dolph9
dolph9's picture

A society that treats housing as an investment to flip, or merely a temporary place to reside, has no future.

A house is a place to live...if you are genuinely dedicated to a house, you will inhabit it, love it, decorate it, maintain it.  And others around you would do the same.

It was once like that in America.

Have you taken a good luck around?  Alot of the houses are crap, and the people who inhabit them even crappier.  Sorry, it must be said.

And, guess what?  We are all paying for each other to inhabit these houses, now.  Through subsidization of the banks, section 8 etc.  One big socialist utopia.

Tue, 05/15/2012 - 21:05 | Link to Comment devo
devo's picture

Spot on.

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