The housing market dropped off a cliff in October, as the original Nov. 30th expiration date for the first-time home buyers tax credit approached, according to the Housing Market Monitor of the Center for Economic and Policy Research. Add to that the 6.25% 60-day delinquency rate in the third quarter -- 58% above the level of one year ago -- and you've got a recipe for housing disaster: more foreclosures, slower sales and ultimately a greater decline in house prices.
"With unemployment virtually certain to remain high well into next year, there is little prospect for any sizable drop in foreclosures".
Note: 11-4-2012, going back to his roots, President "O" spoke today at the local ACORN office. Facing certain defeat tomorrow, he commented that the continuing lack of recovery as a result of the "Bush Years" had doomed his presidency. "As the economy continued to deteriorate, we had to nationalize all major industries" he stated. Despite continuing unemployment of 15% and the loss of tax revenue from the exodus of millions of the "wealthy", President "O" continues to press his case that "its just not my fault". Rich Baxter, special assistant to the President, noted that not enough credit is being given for the management of foreign affairs despite the continued indecision regarding troops in Afghanistan, the several terrorist attacks on NYC after the KSL trial and the implosion of world currency exacerbated by an attempt of merge the governments of Russia, China and the United States.
Subscribe to:
Post Comments (Atom)
3 comments:
Actually, I view the drop in housing starts as a good thing.
Warren Buffet's comments on CNBC regarding the housing market is that the correction is ongoing, that the number of starts is down as it needs to be so that inventory will drop and prices will rise. He points out that we continue to form households (people/couples) and they will eat up the inventory and things will come into balance.
My view is that government accelerants, such as cash for clunkers and first time buyer tax credits simply borrow from future demand and push the hole into the future. Governments are not good at managing markets, and, generally speaking, they end up making matters worse.
What would be constructive would be taking actions to stimulate job creation. That does not mean taking money away from some individuals and giving it to others through government employment programs. What it means is taking actions that stimulate entrepreneurs/capitalists to create jobs that create sustainable value.
Sustainable jobs are jobs that create profits.
Hags
I deleted my comment, which pointed out that JG had erroneously indicated the next presidential election date. Jim corrected his mistake once it was pointed out.
If Jim worked for the Obama Administration, Drudge would have had a banner headline proclaiming that Obama doesn't even know what year the election is going to be. Every Fox New anchor would "cleverly" bring up the error and some commentators would even suggest that Bam really did not know when we have elections, but he certainly ought to as commander-in-chief (maybe Wm Kristol?). "In fact, It is well known that they have an election scheduled in Kenya in 2011, which is possibly preoccupying President Obama" (sounds like Krauthammer)
That, my friends, is the state of things today.
Post a Comment