Comments on: The Housing Bust – The Final Chapter http://dailyreckoning.com/the-housing-bust-the-final-chapter/ Economic News, Markets Commentary, Gold, Oil and Investing Strategies. Sun, 27 May 2012 09:55:17 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Wurkinfordapoor http://dailyreckoning.com/the-housing-bust-the-final-chapter/#comment-37713 Wurkinfordapoor Sun, 08 Nov 2009 18:27:46 +0000 http://dailyreckoning.com/?p=19845#comment-37713 I think you're all full of merda I think you’re all full of merda

]]> By: Russ http://dailyreckoning.com/the-housing-bust-the-final-chapter/#comment-37674 Russ Sun, 08 Nov 2009 13:12:12 +0000 http://dailyreckoning.com/?p=19845#comment-37674 A Question: Either way housing and/or the general economy heads, the US $ over time is absolutely headed down to zero & that seems to be the stance held by Mr. Buffett isn't it? Therefore, how do we figure the "value" of housing, regardless of price, as the purchasing power of the housing prices continues to be re-evaluated against a downward trending US $? For example, if we look at the American Institute For Economic Researches' "Chart Book" graph of the US $ sense the 1800'ds, we can see where the purdhasing power of the US $ was as high as around 140 pennies; while today the US $ is stuggling to maintain 4 pennies in buying power ea. and so how do we correlate that against future home price values? In other words let's say for sake of our question here a house is selling for $1,000 when the US $ was @ 140 pennies each which would equate into premium $1400 in purchasing power; while that same $1,000 home today equates into a mere $40 in purchasing power. We certainly know the difference between $1,400 of purchasing power vs. $40 vs. todays' higher prices that translate our general purchasing power against the inflated $ for all nationally available goods and/or services. Not even fluctuations in interest rates or the supply/demand pictures have thwarted the decades long trend of the downward trend of the US $'s purchasing power and so now back to my question above please. Russ, Calif. resmith@wcisp.com A Question:

Either way housing and/or the general economy heads, the US $ over time is absolutely headed down to zero & that seems to be the stance held by Mr. Buffett isn’t it?
Therefore, how do we figure the “value” of housing, regardless of price, as the purchasing power of the housing prices continues to be re-evaluated against a downward trending US $?
For example, if we look at the American Institute For Economic Researches’ “Chart Book” graph of the US $ sense the 1800′ds, we can see where the purdhasing power of the US $ was as high as around 140 pennies; while today the US $ is stuggling to maintain 4 pennies in buying power ea. and so how do we correlate that against future home price values?
In other words let’s say for sake of our question here a house is selling for $1,000 when the US $ was @ 140 pennies each which would equate into premium $1400 in purchasing power; while that same $1,000 home today equates into a mere $40 in purchasing power. We certainly know the difference between $1,400 of purchasing power vs. $40 vs. todays’ higher prices that translate our general purchasing power against the inflated $ for all nationally available goods and/or services. Not even fluctuations in interest rates or the supply/demand pictures have thwarted the decades long trend of the downward trend of the US $’s purchasing power and so now back to my question above please.

Russ, Calif.
resmith@wcisp.com

]]> By: mike http://dailyreckoning.com/the-housing-bust-the-final-chapter/#comment-37627 mike Sun, 08 Nov 2009 00:37:21 +0000 http://dailyreckoning.com/?p=19845#comment-37627 Low interest rate is irrelevant if banks won't lend money on property that is under water. Low interest rate is irrelevant if banks won’t lend money on property that is under water.

]]> By: House oversupply http://dailyreckoning.com/the-housing-bust-the-final-chapter/#comment-37613 House oversupply Sat, 07 Nov 2009 21:08:48 +0000 http://dailyreckoning.com/?p=19845#comment-37613 It is likely that the FED and the politicians forseeing the next 'housing bust cycle' will keep the interest rates low for a some time till at least the elections are over in the near future, I dont think they will risk their political position allowing this 'bubble' to bust. It is likely that the FED and the politicians forseeing the next ‘housing bust cycle’ will keep the interest rates low for a some time till at least the elections are over in the near future, I dont think they will risk their political position allowing this ‘bubble’ to bust.

]]> By: clint http://dailyreckoning.com/the-housing-bust-the-final-chapter/#comment-37577 clint Sat, 07 Nov 2009 17:30:10 +0000 http://dailyreckoning.com/?p=19845#comment-37577 Dont think this analysis is factoring in that fed funds and related benchmarks are close to historical lows and that the fed funds rate is unlikely to be raised substantially (ie >300 basis pts) in the near future so the resets on arm's entered into at mostly higher interest rates should not be that significant to new carrying costs limiting any new wave of defaults despite their sheer volumes. The bigger problem of subprime and mispriced securities on books appear mostly behind and a different pyschology towards home ownership by consumers-investors along with tighter financial regulation and more conservative lending standards should seemingly prevent a repeat of overleveraging in real estate over the this coming decade. Not expecting any RE boom with a sluggish recovery looming over the immediate horizon but rather housing stabilty and resumed growth later especially in areas with increasing population as repaired balance sheets lower inventories and demographics help demand and prices. See the lift occuring generally in the lower to mid points of entry as sq footage desires devrease which could result in much higher share prices for some national homebuilders despite today's ratios. Mc Mansions will be hard pressed to be in wide fashion given recent lessons and a generation that is more environmentally conscious generation and less geared towards materialism. (At least until they hit their 40"s lol) Dont think this analysis is factoring in that fed funds and related benchmarks are close to historical lows and that the fed funds rate is unlikely to be raised substantially (ie >300 basis pts) in the near future so the resets on arm’s entered into at mostly higher interest rates should not be that significant to new carrying costs limiting any new wave of defaults despite their sheer volumes. The bigger problem of subprime and mispriced securities on books appear mostly behind and a different pyschology towards home ownership by consumers-investors along with tighter financial regulation and more conservative lending standards should seemingly prevent a repeat of overleveraging in real estate over the this coming decade. Not expecting any RE boom with a sluggish recovery looming over the immediate horizon but rather housing stabilty and resumed growth later especially in areas with increasing population as repaired balance sheets lower inventories and demographics help demand and prices. See the lift occuring generally in the lower to mid points of entry as sq footage desires devrease which could result in much higher share prices for some national homebuilders despite today’s ratios. Mc Mansions will be hard pressed to be in wide fashion given recent lessons and a generation that is more environmentally conscious generation and less geared towards materialism. (At least until they hit their 40″s lol)

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