Housing Market Collapse: How Bad Can It Get?
The Fed lowered short-term rates for the second time in two months yesterday in an attempt to stop housing market woes from completely dragging down the rest of the economy. The cut came after a Case-Shiller survey showed that prices of homes in 20 major metropolitan areas fell 4.4 percent for the 12 months through…
The Fed lowered short-term rates for the second time in two months yesterday in an attempt to stop housing market woes from completely dragging down the rest of the economy. The cut came after a Case-Shiller survey showed that prices of homes in 20 major metropolitan areas fell 4.4 percent for the 12 months through August—the biggest drop since the survey began in 2001. And the New York City area wasn’t exempt from the trend: Home prices were down 3.8 percent for the year that ended in August. In a statement accompanying yesterday’s rate cut, officials said the housing downturn is likely to slow the economy, and most experts think the worst is still to come. So now the same old questions remain: How much worse can the national housing market possibly get, and are the heretofore unscathed upper ends of the Manhattan and Brooklyn markets finally going to feel the heat?
Home Prices Are Down, and So Is Confidence [NY Times]
Fed Lowers Key Interest Rate by a Quarter Point [NY Times]
Bonuses on Wall St. are forecast to drop 10% this year, down from the record highs they hit last year. This is hardly something that’s going to precipitate a major crash. Believe me, I wish it would – I’m not in finance and have been trying to buy for the last year, and crying as I see prices continue to go up and up. But I suspect all that will happen in NYC and BS Brooklyn is that prices will flatten and some inventory will sit, and then be pulled off the market by owners who don’t have to sell.
“There will be no bonuses for Wall Street this year”
and your source for this comment is?
I’m afraid you are kidding yourself if this is your belief! There will still be plenty of surplus in the Wall Street persons pocket come pay-day!!
“Dear The What,
Please stop obsessing endlessly about something in which you have no control nor any power to change.
Even if the greatest depression that ever hit America comes our way soon, the human race will still exist and life will go on.
If you need to publicly freak out every day about something, why not switch to global warming and environmental concerns for your subject matter? Because good economy or bad, life as we know it IS in jeopardy if we don’t change our ways.
Have a great day.”
I have been on this subject for the last 3 years. We could’ve stop this thing a long time ago but, greed kept it going. Our children will pay for our folly and will ask this question ‘What the fuck you were thinking?’.
I will beat the hell out of this drum and yes I has some control over it.
You have a great day too (no sarcasm).
The What
Some day this war is gonna end………..
Dear The What,
Please stop obsessing endlessly about something in which you have no control nor any power to change.
Even if the greatest depression that ever hit America comes our way soon, the human race will still exist and life will go on.
If you need to publicly freak out every day about something, why not switch to global warming and environmental concerns for your subject matter? Because good economy or bad, life as we know it IS in jeopardy if we don’t change our ways.
Have a great day.
“but arent you ignoring that this will be good for domesitic ‘producers’ of these same goods, which should lead to more jobs and incomes in these domestic industries.”
Can I ask one question? What do we produce? We are a nation of consumers (tricks) that has been sucked dry. Chuckie and Joe Six Pack income have been vaporized from inflation.
Look around you! Where are the manufacturing jobs at? BTW there will be no bonuses for Wall Street this year.
You are seeing the final stages of this Mutant Real Estate Bubble!
When it blows, it will be hell to pay!
The What
Someday this war is gonna end…………
The What
(I know I’ll regret this but….) the article you posted indicates that the cost for imported cars, wines, jewelry will be more expensive – which sucks for ‘consumers’ of those goods – but arent you ignoring that this will be good for domesitic ‘producers’ of these same goods, which should lead to more jobs and incomes in these domestic industries.
FSRG
Oh yeah, Forget about the housing bubble right now. The financial sector is something we need to worry about!!!!!! Pension plans, 401k, and bank deposits could go BOOM! Banks have very LARGE exposure to this shit. I think you need to pull your money out now, while you still can.
The $915B bomb in consumers’ wallets
Americans have record credit-card debt and banks
http://money.cnn.com/2007/10/29/magazines/fortune/consumer_debt.fortune/index.htm
The What
Some day this war is gonna end…………..
Oh now you get your head out of your ass Mr. B. Now we are addressing the real issue.
Housing Market Collapse: How Bad Can It Get? It can get get REAL bad people. The credit markets are getting pounded and the short term paper they can’t roll over. The mortgages written this year have crashed. Foreclosures are skyrocketing to new highs and this will not get better until 2015.
Here read this! The FED shitted on us yesterday to save the fucks on Wall Street.
What a Weak Dollar Means for U.S. Shoppers
http://www.smartmoney.com/dealoftheday/index.cfm?story=20071031
Grammar Nazi flame on. I’m going to get some coffee. ; ^ P
The What
Soon this war is gonna end…
BTW Wall Street is getting pounded right now.
http://www.bloomberg.com/
Considering that Brownstoner is usually filled with posters (as well as Bstoner and staff) complaining that everything is priced to high for ‘regular’ folks – shouldnt a housing downturn be widely cheered here?
FSRG