Economy

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"US Housing Crisis... Worse Than Great Depression"

Posted 11 months ago|15 comments|836 views
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"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... The only comfort is that the latest monthly data show that towards the end of the first quarter prices started to fall at a more modest rate... Nonetheless, prices are likely to fall by a further 3 percent this year, resulting in a 5 percent drop over the year as a whole."
http://www.cnbc.com/id/43395857?utm_sour...%29

"For those of you that are confused. Here are the facts:
Homeowners across the country are drowning in negative equity (read this). Zillow.com reported a new high in negative equity rates: 28.4% of single-family homes with a mortgage across the country are now underwater... meaning that more borrowers owe more on their homes than the sales price in the history of crunching these numbers... are far worse in the nations largest metro areas. Atlanta for example has a 55.7% negative equity rate, Denver 41% and Chicago nearly 46%."
http://www.greenewave.com/the-key-ingred...
http://www.youtube.com/watch?v=o_unoB8xF...

They say Canadians are a little slow on the "uptake" when it comes to American politics, granted we are a not the forerunner as the world leader... but as I said before, what goes down the American sewer pipes... will eventually make it's way into our drinking water. And if this housing collapse is a "sign of the end" ...we won't be floating much longer North of the boarder.

How is it that foreign policy and global security takes precedence over home equity? What good is it to "fight against terrorism" if you don't have a home to come back to? IF America is showing the world how it's done, and how "democracy" is the cure for the worlds woes... it's no wonder that the so called underdeveloped nations don't want anything to do with it. You can't sell democracy with a foreclosure sign.

The trillions spent on a bankers bail-out should have went to the people... what a shot in the arm of the economy would that have been... like the bankers that pocketed the money... real people could have done the same and boosted themselves and their country into stability... rather than ruin! I am not advocating "free money" ...what I am saying is that the homeowner and US citizen is on the hook for the financial damage caused by the bailouts... at least they would have got something out of it.

I owned a home once that ended up facing foreclosure... I know what it is like to loose everything... and have another take what I worked for and make millions on it. I know what it is to be "out on the street" with a young family... I also know what it is like to see a miracle and survive such a devastating time. What I don't know what it is like... is to have politicians that have everything, make good decisions for those who don't.

The worst words I have heard from a lending institution (I am not even exaggerating), was "Good luck out on the street" ...I think America is now getting that message.
UPDATE - 1 month ago
"Don't Waste Your Life" by John Piper
http://dwynrhh6bluza.cloudfront.net/reso...
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COMMENTS
11 months ago: "US Is in Even Worse Shape Financially Than Greece: Gross...
Taken together, Gross puts the total at "nearly $100 trillion," that while perhaps a bit on the high side, places the country in a highly unenviable fiscal position that he said won't find a solution overnight."
http://www.cnbc.com/id/43378973?utm_sour...%29
11 months ago: Are there no issues in Canada that grab your attention? What is your preoccupation with the United States? Are you an expat, a refugee, running from the law, obsessed? What is it? Because I would like to know.
11 months ago: DJ,

We have a saying up here... "The US sneezes and we get a cold" ...I was talking to a Realtor yesterday and because we live on a border town, the markets effect us almost directly. Does that help?
11 months ago: TB,
Not really. I'm very familiar with border towns and their economies are obviously intertwined. They are after all next to each other. It makes no difference if they are part of different countries. Yours seems to be an obsession. US Health care, US Real estate, US Employment, The US Federal Reserve, The US Dollar, The US President are all topics you keep touching on.

That is at the very least an abiding interest but you are mostly critical which is why I call it an obsession. Why don't you talk more about some very interesting Canadian topics. (BTW: Kudos on your most recent essay. It was Canadian and current, albeit disappointing. Nobody wants to see their own countrymen acting like fools. If it makes you feel any better I don't blame their nationality. I blame Hockey. It is a violent sport .)

You could talk about Canada's relationship to Great Britain. Is Canada a protectorate, territory or what of Great Britain? Why is "The Queen" on your currency?

You could talk about the English speaking peoples flight from Quebec and how that one little misunderstanding led to an almost completely French speaking province? That wants to secede?

You could talk about how a Nation of Quebec would affect Canada and the US.

You could talk about how small farmers in mineral, oil and natural gas rich Canadian areas have no rights when the Canadian government allows big businesses to trample all over the land to get at the wealth below.

You could talk about the next big oil grab which belongs to Canada and could potentially make Canada the next richest country on earth, The oil sands.

You could talk about how Canada exports more produce to the US than to any other country(BTW: Why is the US importing produce from Canada? Don't we have a warmer climate than Canada?)

There are so many different Canadian topics to talk about and all you talk about is the US. I just don't get it! By the way your sneeze expression I do get because it applies to the US and Mexico also a tropic of much contention to most Americans. America and Mexico's economies are tied together like white on rice.
11 months ago: DJ,

You said... "America and Mexico's economies are tied together like white on rice" ...exactly and "North America" is where we all live... you know "the West". Why would I talk about a bunch of stuff that was unknown to my peers... I like discussing things that another can debunk and refute... maybe even confirm. You want to talk about the Queen? ...or their debutantes ball? I don't.

Have you heard of NAFTA?
http://www.nafta-sec-alena.org/en/view.a...

Out Of The Box
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11 months ago: I thought this article has quite a bit of Canadian flare, and that the point of the article itself was how the US market affects the Canadian market. And how the US, with its careless spending policies are eventually going to take the rest of the world in the same handbasket we are riding in.

Regardless, we here aren't so thin-skinned, for the most part, that we bristle when a "foreigner" critiques our government. Heck, we do it to them too.
11 months ago: OOTB,

I confess I have a Canadian perspective Eh! But I stumbled upon an article that covers some of my concerns...

"There are numerous reasons why the Canadian dollar will not survive a US dollar collapse:
1) The Canadian economy is very tied to the US economy
2) The Canadian Government is intent on devaluing the Canadian dollar alongside the US
3) The Bank of Canada has virtually no gold backing the Canadian dollar
4) All that does back the Canadian dollar is the US dollar and other fiat currencies
5) The Canadian dollar is not used globally"
http://sgtreport.com/2011/06/the-canadia...
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11 months ago: And that hook you were talking about TB comes with a hefty pricetag.

Every household in the US is beholden to the US debt in the amount of $558,000. Indentured servitude is the only practical way out of this mess, short of chaos. When every nation goes bankrupt, and the world bank steps up to claim its collateral, we are that collateral. They will act all charitable, and offer to feed the world provided they dance the dance.
11 months ago: Is there a "panic" yet?

"The news that frequent CNBC guest Peter Yastrow of Yastrow Origer (and formerly with DT Trading) told CNBC that "We're on the verge of a great, great depression. The [Federal Reserve] knows it" is going viral today."
http://sgtreport.com/2011/06/yastrow-%E2...


11 months ago: Wow! Replace commonsense and facts with far out religious political conspiracy theories! Yup that makes sense, but still no answers to legitimate questions. Just a whole bunch of mutual back scratching. Um hmm!
Out Of The Box
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 Moderator
11 months ago: Far out religious political conspiracies? Would you care to enumerate?
11 months ago: DJ,

I'm sorry you feel left out... your hair looks great today !:]
11 months ago: OOTB,

TB has a tendency to use religious news outlets as his sources..
Out Of The Box
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 Moderator
11 months ago: Didn't see any of those in his citations on this article. What I did find interesting is the SGTReport uses the phrase
"The Corporate Propaganda Antidote" as its tag line. Sounds like a liberal website, huh? Yet the information is conservative and fact based. Maybe those Canadians are onto something. Maybe having a view from the outside in is better. Maybe they can see the forest without being blinded by the trees.

Kind of like when a company calls in a consultant to get a different perspective than the one commonly accepted.
11 months ago: OOTB,

I was looking to see if the stuff on the site was "all wet" or if it had any merit... as I said I stumbled on it, but wondered what you thought. I personally don't have a clue about all this trading and money market stuff... when it comes to 'futures" ...I see myself missing a few teeth and sporting a corn-cob pipe !:]

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