Owner: National Bubble URL:http://www.nationalbubble.com Join Date: Wed, 07 Nov 2007 11:32:17 -0600 Rating:0 Site Description: News and commentary about the Real Estate bubble and the greedy people behind it. Analysis of how the housing crash will hurt the U.S. economy. Site statistics:Click here
According to economists: the recession is already here 2008-03-13 15:55:13 According to the Wall Street Journal:
Most Economists Say Recession Has Arrived as Outlook Darkens
The U.S. has finally slid into recession, according to the majority of economists in the latest Wall Street Journal economic-forecasting survey, a view that was reinforced by new data showing a sharp drop in retail sales last month.
“The evidence is now beyond [...]
Mortgage regulation - Too little too late 2008-03-13 13:22:39 Now Paulson is talking about regulating the mortgage industry. Where were these clowns back in 2003 when the housing bubble started getting out of control?
USA Today is reporting this today:
WASHINGTON — Treasury Secretary Henry Paulson on Thursday unveiled proposals for cleaning up mortgage and securities markets, including a recommendation to license mortgage brokers.
Speaking at the [...] Read more:Mortgage
, little
Closing the gap 2008-03-13 13:12:59 We have been saying on this blog since 2005 that affordability is crucial for the housing market. Realtors have been saying that there is so much demand for real estate that people would pay anything to buy a house. Well, after the huge declines in home prices over the last year it looks like we [...]
Home builders put new projects on hold 2008-03-13 12:49:10 With a declining housing market and a credit crunch, a lot of the projects planned a year or two ago are now being put on hold. This is what The Daily Breeze reported about new construction in Hawthorne, California:
The slumping real estate market has brought Hawthorne’s housing boom to a standstill, interrupting plans for about [...]
The Dollar keeps sinking 2008-03-13 09:53:21 According to Bloomberg:
March 13 (Bloomberg) — The dollar fell below 100 yen earlier today for the first time since 1995 and dropped to a record low against the euro after a Carlyle Group fund moved closer to collapse, adding to turmoil in financial markets. Read more:Dollar
, keeps
, sinking
Horrible economic news keep sinking the housing market 2008-03-13 09:31:53 The housing market
in the US keeps getting worse every day. Today we had bad news on several economic indicators. These are some of the bad news we received today according to Yahoo Finance:
U.S. gold futures rallied to a record high of $1,000 an ounce on Thursday, fueled by a combination of a weakening dollar, [...] Read more:sinking
Foreclosures keep increasing 2008-03-13 09:22:14 This from AP via Yahoo Finance:
LOS ANGELES (AP) — Nearly 60 percent more U.S. homes faced foreclosure in February than in the same month last year, with Nevada, California and Florida showing the highest foreclosure rates, a research firm said.
A total of 223,651 homes across the nation received at least one notice from lenders last [...] Read more:Foreclosures
More pain expected for credit markets 2008-03-13 06:44:45 According to Reuters:
NEW YORK (Reuters) - This week’s central bank efforts to unfreeze credit
markets will offer only temporary relief and more pain can be expected before a market recovery, analysts said at a credit conference on Wednesday.
The U.S. Federal Reserve announced on Tuesday that it would inject up to $200 billion to strained credit [...]
Wachovia says “It feels like we have a ways to go” 2008-03-12 16:30:57 That is Wachovia Chief Risk Officer Don Truslow said on a Deutsche Bank Securities Inc conference call. According to Reuters via Yahoo Finance:
“It feels like we have a ways to go,” Truslow said on a Deutsche Bank Securities Inc conference call. Referring to the nine innings of a baseball game, Truslow said he was “unsure” [...]
The bubble is bursting in Downtown LA 2008-03-15 06:53:35 The Los Angeles Times had a great article about this:
Prices of condominiums, which dominate the downtown market, have fallen more sharply here than in Los Angeles and Orange counties overall, according to DataQuick Information Systems. More than one-third of the residential projects approved by city officials have been sidelined.
Downtown
’s defenders say the area simply is [...] Read more:bursting
More problems for the San Diego housing market 2008-03-15 06:10:56 This from the San Diego
Tribune:
San Diego
County’s housing market
deepened its slump last month, with the median home price now down 20 percent from its peak in November 2005.
DataQuick Information Systems yesterday reported the median price for all county homes in February was $415,000, down 3.3 percent from the previous month and down 13.5 [...] Read more:problems
Are we in a recession already? 2008-03-14 11:23:45 According to CNBC:
The United States has entered a recession that could be “substantially more severe” than recent ones, former National Bureau of Economic Research President Martin Feldstein said
Friday.
“The situation is very bad, the situation is getting worse, and the risks are that it could get very bad,” Feldstein said in a speech at the [...]
The impact of foreclosures 2008-03-14 06:43:49 This from USAToday:
The mortgage foreclosure crisis has caused a drop in cities’ revenues, a spike in crime, more homelessness and an increase in vacant properties, a survey of elected local officials out today shows.
About two-thirds of 211 officials surveyed by the National League of Cities reported an increase in foreclosures in their cities in the [...] Read more:impact
No more government bailouts 2008-03-14 06:41:14 Chris Powell wrote this commentary for The Stamford Times:
The mistake is in the assumption that the mortgage crunch is some sort of natural disaster when it is only the usual ending of the ordinary boom-and-bust cycle of real estate. Everyone who takes a mortgage with an adjustable interest rate is gambling. Everyone who took an [...]
Stop the housing bailout plans 2008-03-14 06:33:35 Fool.com has a great article about the housing bailout plans
currently being proposed in Washington.
Last week in The Wall Street Journal, Feldstein proposed that the government lend troubled homeowners 20% of their outstanding mortgage balance to ease pain. The money, he suggested, would come from selling Treasury bills (because those grow on trees) and have [...]
The collapse of the financial markets is coming 2008-03-17 08:51:50 Unfortunately, we were right in our assessment of the housing bubble and the U.S. economy. Look at some of today’s headlines from AP via Yahoo Finance:
Global Markets Tumble
World Markets Slide in Wake of Bear Stears Collapse — Oil and Dollar Hit New Highs, Lows
LONDON (AP) — Global markets plunged Monday on news that JPMorgan Chase, backed [...] Read more:collapse
Housing market - Learning from Japan 2008-03-16 06:53:51 I found this great article on the NPR web site:
Imagine this scenario: Real estate prices plummet, banks falter and policymakers wring their hands while a nervous public watches and worries. America in 2008? No. Japan
in 1990.
Nearly two decades before America’s mortgage crisis, Japan weathered a real estate crisis of its own. And Japan’s experience [...] Read more:Housing
, Learning
Fannie Mae’s CEO: home prices will continue to go down 2008-03-19 16:12:09 Fannie Mae’s CEO Daniel H. Mudd told CNBC the following:
As for how long the housing slump will go on, Mudd noted that, from peak to trough, average home prices typically go down 13 to 17 percent. There was about a 3 percent drop last year, and a 5 to 7 percent decline projected for this [...]
The Fed is unable to lower mortgage rates 2008-03-19 13:45:01 The Fed has tried, and tried, and tried but it still has not been able to lower mortgage rates. No matter how much liquidity they inject into the market, it doesn’t seem to make a difference.
The LA Times has a great article about this subject:
The Federal Reserve has been slashing short-term interest rates since August [...]
The Fed is now more worried about inflation 2008-03-18 13:38:25 Yes, the Fed lowered short term rates by 75 basis points but they included one full paragraph in their latest statement about inflation going up. This is what they say:
Inflation has been elevated, and some indicators of inflation expectations have risen. The Committee expects inflation to moderate in coming quarters, reflecting a projected leveling-out of [...]
The Fed keeps lowering short term rates but mortgage rates stay high 2008-03-18 13:28:53 The Fed just lowered short term rates by another 75 basis points but mortgage rates stay high.
According to CNBC:
Mortgage Rates Aren’t Likely to Move Lower
Even with a three-quarter-point cut in interest rates today, homeowners shouldn’t hold their breath waiting for their mortgage rates to follow.
If recent history is any guide, the Federal Reserve’s aggressive rate-cutting [...] Read more:keeps
Inflation goes up - Housing keeps going down 2008-03-18 11:01:55 The news keep getting worse by the day. According to CNBC:
Wholesale Inflation
Hotter; Housing
Slumps Further
The flagging U.S. economy got more mixed news from its troubled housing sector on Tuesday, while evidence of inflation pressures continued to lurk in the producer pipeline.
U.S. producer prices rose by 0.3 percent in February as expected, but a [...] Read more:keeps
The burst of the housing bubble in South Florida 2008-03-18 06:58:58 This from the Sun Sentinel:
Although the Fed has cut rates, mortgage rates for 30-year fixed-rate loans actually have risen the past two weeks. Freddie Mac, the mortgage company, reported last week that 30-year fixed-rate mortgages averaged 6.13 percent, up from 6.03 percent the previous week.
Many who bought at the height of the housing boom in [...] Read more:South
, Florida
, South Florida
Americans think we are already in a recession 2008-03-22 12:11:00 According to CNN:
Americans
on economy: This hurts
Nationwide poll locates sore spots as consumers are knocked around by inflation and gas prices. Consumers hunker down but feel optimistic about future.
NEW YORK (CNNMoney.com) — Some economists say the United States is not in a recession, but don’t tell that to the majority of American consumers.
A national CNN/Opinion [...] Read more:think
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