Monday, January 12, 2009
No way out – house prices will keep falling for years
* Even Obama's people project that, if his stimulus plan is adopted, unemployment will remain at the current level (7.3%) for three years. * Consumers still have way too much debt, and they're now losing jobs at an accelerating rate. We're not going to suddenly jump back to irresponsible debt-fueled spending growth, especially with banks and credit-card companies tightening lending standards. * House prices are falling at almost 20% year over year. Markets that big don't turn around on a dime, no matter what you do.