Inflation Fears, Credit Crunch, and Our Gov’t… the inter-connectedness of it all
A little dated ( May, 2008 ) but still very relevant. We are destroying our country and our financial well-being. Everything is inter-connected. We are going BROKE and are headed for the 1970′s style “stagflation” when the FEDs have no more bullets to shoot out the problems! Our dollar is tumbling fast each day. An interesting piece from Glen Beck:
CA has a 4.25 year inventory?!?
Wow. Especially when CA controal approximately 40% of the real estate/ money available for lending. If this money continues to be tied up, or even worse not paid back, how could this NOT affect the entire market?
CA Foreclosures “Leveling Off”? What does this really mean?
It is that time of the month again folks! The June monthly CA foreclosure report is ready, data courtesy of Foreclosure Radar. It was another ‘record’ month, which when speaking of foreclosures, is not a good thing. However, in a couple of areas we show some ‘leveling-off’.
‘Leveling-off’ is considered to be positive by many but that sometimes is not the case. For example, if retail sales ‘level-off’ going into December, it is not a good thing because sales should accelerate in the Holiday’s. This is analogous to what happened in the foreclosure arena in June. Although numbers seem to be leveling off, the situation is continuing to worsen according to the way I see the data.
Harvard’s “The State of the Nation’s Housing 2008″ Report
July 7, 2008
Outstanding downloadable report with very interesting data. Harvard’s “The State of the Nation’s Housing 2008″ Report.
The study presents a dispiriting picture of how severe and structurally ingrained housing affordability challenges have become. By 2006, 17.7 million households—about 15.8 percent of all households—were spending more than half their income on housing, an increase of 3.8 million just since 2001. Even 34 percent of households with incomes equivalent to 1-2 times the federal minimum wage, and 15 percent with incomes equivalent to 2-3 times this wage, spend more than half their incomes on housing. With the economy spinning out a growing proportion of full and part-time jobs with wages in these ranges, prospects for a meaningful reduction in affordability problems remain dim.
This year’s State of the Nation’s Housing report finds that demand for new homes has dropped well below projected long run demand. House price deflation, tight credit, and consumer concerns over the direction of the economy have kept buyers at bay and some households from forming. The somber conclusion is that if the economy slips into recession or job losses keep racking up, household growth and homeownership demand could fall even more.
Fannie Mae and Freddie Mac plunge, 52 Week Low!
July 7, 2008
CNNMoney.com
NEW YORK (CNNMoney.com) — Shares of mortgage financing giants Fannie Mae and Freddie Mac both plummeted Monday after an analyst with Lehman Brothers wrote in a report that the two companies may need to raise billions of dollars if accounting rules are changed.
Fannie Mae and Freddie Mac are government sponsored enterprises that help the mortgage market function by purchasing pools of loans and packaging them into securities.
According to a report from Lehman Brothers analyst Bruce Harting, the Financial Accounting Standards Board (FASB) is considering a rule change that would force Fannie and Freddie to move so-called off balance sheet securities onto their balance sheets.
The potential accounting change would require Fannie Mae to add $46 billion of capital and Freddie Mac to add $29 billion of capital, Harting noted.
Wonder where they’re gonna find all that money???
The Looting of America
July 7, 2008 – http://market-ticker.denninger.net/
“If Congress again opens up banking to Wall Street speculation, as it opened up S&Ls and banks to real estate speculation, regulators will quickly lose control over the complex series of events that a pervasive marketplace will immediately set in motion. Insider abuse, self-dealing, and back scratching relationships between institutions will run rampant.
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