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Housing Bust Lessons From the Great Depression
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This Link is located in the Public Channel Housing Bubble and Bear Links.
Posted by ian 2 years 194 days ago (marketoracle.co.uk). Views: 160
Tags: housing bubble great depression |
| Related Tags: credit crisis gold wall street peter schiff economics inflation banks |
From an article in the November 1932 Saturday Evening Post: “The decline in the quoted value of New York listed stocks is only part of the story. The total of real-estate mortgages in default, particularly mortgages on city property, is unexampled. The value of real estate can no longer be accurately appraised, because the market for real estate has been practically paralyzed.”
We are already seeing this. Many REO properties are simply sitting on the market and stubborn lenders and sellers are refusing to lower prices. Buyers are refusing to buy or are unable to get loans. It is a Catch-22 that is accelerating the market on a downward spiral. People realize that housing is going down and are suddenly reluctant to buy. The MBS market now seeing the intestines of their portfolios is realizing that some overpricing may have occurred. I'm not sure if any of you have seen the new housing syndicate marketing angle (I caught a glimpse of this on late night infomercial happy television). They are now pushing, get this, FHA loans! Suddenly, the industry that pumped interest only, hybrid, reverse mortgage, 2/28 loans, stated income, and every other weird concoction of loans is coming home to the safest of the safe. But the scary implication here is they are touting, “no need to worry here, these are government insured.” Guess that means the American tax payer is going to bail out the housing industry. At least this is what the housing industry expects.
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trent said |
| 2 years 183 days ago |
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Gamblilng
And one thing is certain, Americans do not like gambling with their homes unless they are winning.
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