Facts and Housing Recoveries are Stubborn Things

Almost fully five years after the recession was declared over, the data do not support the declaration. Facts continue to muddy if not downright refute the political claims of a recovery. All of the hyperbole regarding the “recoverying” economy is just that. It proves that economists can be manipulated more than the economy itself. Reader NII offered this tidbit of [...]

Detroitification — It’s The Government, Stupid

Facts are stubborn things. No matter how hard the Washington crowd tries to sell an economic recovery, inconvenient and contrary facts keep rearing up to shatter their mythmaking. Few people any longer believe the claims of declining unemployment or low inflation at least based on purchases they make. The fable of a housing recovery is now crumbling:  New Home Sales [...]

What’s Up With Watt?

A non-partisan ten-year old should know that Mel Watt should not be appointed to head the Financial Housing Finance Agency (FHFA). An excerpt from the mission of the FHFA states: FHFA’s mission is to provide effective supervision, regulation and housing mission oversight of Fannie Mae, Freddie Mac and the Federal Home Loan Banks to promote their safety and soundness, support housing [...]

Is There A Housing Recovery Underway?

A couple of OK months (i.e., not downright bad) in the residential real estate market has the optimists declaring (again!) that a bottom has been reached for home prices. The data are hardly definitive but provide “green shooters” the opportunity to claim that the worst is behind us. Most of those making this claim have no more basis for doing [...]

Is The Housing Crisis Over?

Recent numbers were positive for housing. Are they really meaningful and sustainable? There is not universal agreement that the bottom has yet been reached. Realtors, politicians and others with vested interests are quick to claim we are on our way back. Michael Panzner cites others who are less sure or disagree with this conclusion: Potential supply is significantly larger than [...]

Case Shiller Throws a Wet Blanket on Housing Recovery Hoopla

Tyler Durden provides his commentary on Case Shiller’s home price index. Their report was not pretty and runs counter to all the mainstream media foo foo dust about a housing recovery. Take a look at the charts below to see what the “recovery” looks like. No Housing Recovery – Case Shiller Shows 8th Consecutive Month Of House Price Declines Little [...]

Inconvenient Analysis by Charles Biderman

Charles Biderman provides his usual insights on what is happening in the economy as opposed to what government, media and CNBC touts wants you to believe. Subsequent to Biderman’s commentary was yesterday’s disappointing Durable Goods report:  Durable Goods Big Miss -4%, Expected -1%, Biggest Sequential Drop Since January 2009

Upper-End Home Prices to Halve?

Bob Chapman is pessimistic regarding the high-end home market: Banks have let high-end owners in default live in homes free for up to three years for technical reasons and to hide inventory. These figures are available to everyone, but we hear just the opposite on financial channels. Like everyone else in business there is little validity in his or her [...]

Blowing More Housing Bubbles

Government intervention in the economy always makes matters worse economically. The reason is that all interventions are undertaken to prevent outcomes deemed by the market to be undesirable. Interventions are coercion in in that they attempt to produce outcomes that otherwise would not occur in markets. They are also undemocratic because markets are nothing more than voting machines where the [...]

On The Path To Bankruptcy Turn Left toward Madness

Economic conditions are deteriorating rapidly. Obama, in full campaign mode, continues to spend money as if we have it. He talks about the deficit problem while he continues to make it worse. As Financial Armageddon pointed out with this recent listing of news articles, we don’t need new spending to exceed projections for the year. Prior spending is out of [...]

Slouching Toward The 1930s

The current economic crisis rivals the one of the 1930s. Despite shameless propaganda by government and its cronies in the media, people understand that the situation is getting worse. Consumer confidence continues to decline as does confidence in the future. We are headed for an event that history will record as worse than The Great Depression. It is unavoidable. The Level [...]

Idiots in Washington and Their New Housing Program

The scam that is government continues. The latest attempt to “solve” the housing crisis is what got us into this mess in the first place. Here is Zerohedge’s take: The core of the announced transitions to HARP revolve around allowing borrowers to refinance mortgages regardless of how underwater homes are. Of note is the “enhancement” which removes “the current 125 [...]