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Us Housing Crisis Is Now Worse Than Great Depression

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US Housing Crisis Is Now Worse Than Great Depression

It's official: The housing crisis that began in 2006 and has recently entered a double dip is now worse than the Great Depression.

Prices have fallen some 33 percent since the market began its collapse, greater than the 31 percent fall that began in the late 1920s and culminated in the early 1930s, according to Case-Shiller data.

The news comes as the Federal Reserve considers whether the economy has regained enough strength to stand on its own and as unemployment remains at a still-elevated 9.1 percent, throwing into question whether the recovery is real.

"The sharp fall in house prices in the first quarter provided further confirmation that this housing crash has been larger and faster than the one during the Great Depression," Paul Dales, senior economist at Capital Economics in Toronto, wrote in research for clients.

According to Case-Shiller, which provides the most closely followed housing industry data, prices dropped 1.9 percent in the first quarter, a move that the firm interpreted as a clear double dip in prices.

http://finance.yahoo.com/news/US-Housing-Crisis-Is-Now-cnbc-829408274.html;_ylt=AoDrMCc4_bobZWjsv_iajPG7YWsA;_ylu=X3oDMTE1bzJrdWw5BHBvcwM5BHNlYwN0b3BTdG9yaWVzBHNsawN1c2hvdXNpbmdjcmk-?x=0&sec=topStories&pos=6&asset=&ccode=

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i wonder if the great depression was as mind numbingly boring as this one is ?

watching those fry to let nimbies burn is like a snail race. up the anti already.

someone pour petrol on them please. they are just smouldering away.

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It's a funny old world when a large supply of cheap housing is a 'housing crisis'. When I read the words 'housing crisis' I think of people unable to find somewhere to live, not people who can now buy a house for far less than it would have cost a few years ago.

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It's a funny old world when a large supply of cheap housing is a 'housing crisis'. When I read the words 'housing crisis' I think of people unable to find somewhere to live, not people who can now buy a house for far less than it would have cost a few years ago.

Agreed, but there is always somebody on the other side of the trade. In the case of housing it's older individuals and their pension funds who are loaded up to their eyeballs with property 'wealth' and its derivatives: houses, mortgage-backed securities, bank bonds/shares etc etc. Cheap housing for a large number of young people means less money for old people, especially the richest ones.

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Agreed, but there is always somebody on the other side of the trade. In the case of housing it's older individuals and their pension funds who are loaded up to their eyeballs with property 'wealth' and its derivatives: houses, mortgage-backed securities, bank bonds/shares etc etc. Cheap housing for a large number of young people means less money for old people, especially the richest ones.

And a lot less money for those 30-somethings who bought a few years ago, who were just trying to get on with their lives.

Eric has it right. The liar loans have polluted the whole market. Whether we have the will or means to clean up the pollution, remains to be seen.

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And a lot less money for those 30-somethings who bought a few years ago, who were just trying to get on with their lives.

Eric has it right. The liar loans have polluted the whole market. Whether we have the will or means to clean up the pollution, remains to be seen.

I think turning crap into AAA rated investment opportunities is what polluted the markets, it also helped people borrow far more because the overall risk was theoretically lower for those investing and they wouldn't lose money.

The whole system has become Ponzi because of the distortions, the unwind is going to be very very painful.

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I wish there was a clear indicator of this happening over here too.

Halifax this, Nationwide that. Land Registry down, Rightmove up.

With so many mixed messages there's no wonder the crash here is more of a dribble

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And a lot less money for those 30-somethings who bought a few years ago, who were just trying to get on with their lives.

I'm not sure this is right. Those 30-somethings willingly signed a piece of paper which said they would repay the bank £250k over the next 25 years. Whether house prices go up, down, or sideways, they still have to pay the bank the same.

The thing that will affect the size of their payments is interest rates, not house prices. As the interest rate is the most manipulated price of all, lord knows what's going to happen to that. At the moment those 30-somethings are being protected by the full might of the printing press.

And if they bought interest only, well, that was probably a bit silly.

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And a lot less money for those 30-somethings who bought a few years ago, who were just trying to get on with their lives.

Boo f*cking hoo "just trying to get on with their lives" my ****, they were counting on free money provided by others (future buyers) to make ends meet and got burned. Touch f*cking shit. EVERYONE who bought a property during the boom was knowingly taking part in a pyramid scheme to fleece others, so they can hardly turn around and bitch that it didnt come off.

Edited by goldbug9999

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Those 30-somethings willingly signed a piece of paper which said they would repay the bank £250k over the next 25 years. Whether house prices go up, down, or sideways, they still have to pay the bank the same.

Uh, no. In many US states they just find a new place to live and hand the keys in to the bank; the loan is secured on the house, not their future income, so they can then walk away free.

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as unemployment remains at a still-elevated 9.1 percent

And the rest.

The U6 figure (the one they don't make a big fuss about), is around 16% (link).

Shadowstats has it even higher.

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This is only true in a minority of states.

http://www.forecloseddreams.com/recourse_states

Yep there are just as many delinquancies in recourse states

There are 3 factors at work here

1) The bailing out of the banks has removed the concept of moral responsibility for most Americans, its just a business transaction, rightly so

2) House Prices have declined past the point where psychology has switched so that there is belief that they will never return to the highs

3) Rents can be less than 50% of the mortgage payments

IF the UK has a currency crisis at some point and all that entails for interest rates all 3 factors above will apply equally to UK mortgagees, a similar fck it attitude will take place and UK mortgagees will do exactly the same, it is the common sense thing to do (rent next door and save half your money or spend every last bit of income on a mortgage to a bank that is perceived will never recover so your family goes without , dont think so.

Its exactly why deposits are important, enough skin in the game is the only way to make the continuance of payments rational, with the number of 90 and 100% IO mortgages in the UK theoutcome isnt hard to project.

Edited by georgia o'keeffe

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It's a funny old world when a large supply of cheap housing is a 'housing crisis'. When I read the words 'housing crisis' I think of people unable to find somewhere to live, not people who can now buy a house for far less than it would have cost a few years ago.

Even funnier when to entice people to keep their savings in privately owned Bankrupt banks - they are persuaded with taxpayer funded and backed bribes! (the first £50,000 now 90? bank 'guarantee')

Otherwise we would have had mass withdrawls long ago, bank runs, banks going under and properly fekked off 'subsidised' rich shareholders & owners aka 30's style as people lose all faith in the elites banking system!

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  • 285 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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