Posted on 02/26/2009 12:17:52 PM PST by Islander7
A history of home values The average price of housing hasn't really changed (adjusted for inflation) aside from the Great Depression. What is the other period that sticks out as being fantastically different? You guessed it -- right now. It's in the other direction, but that's possibly even more dangerous. Take a look at the chart - Glenn will go into detail tonight on TV - Fox News Channel at 5pm Eastern.
(Excerpt) Read more at glennbeck.com ...
The title in the email that lead to the article.
I’d like to see that chart adjusted leaving out the artificially inflated CA/FL/NV/NY markets. I’ll bet it levels out.
Hey Glen Beck - start talking about the birth certifcate and how we have the energy resources to turn it all around and avoid a depression.
His screaming the sky is falling is not productive. There are solutions. Obama grabbing more power daily is making it worse.
It looks to me that the market is just correcting. (shrug)
That “run-up” is unsustainable, and should have been a clue to buyers during that time.
Not that he says much that is not true, he just says too much.
BTW, invesments as an inflation hedge are never a bad idea.
What would the “real return” of a bank CD look like, after inflation? (And taxes, for that matter, at least a home gives some tax breaks!)
I am not a home owner, so I don’t find this chart all that depressing.
There is a lot to be considered when assessing the “value” of a home. More than just price.
I used to really like Glenn Beck. His humor appeals to me. But he’s so darn gloom and doom, I can’t take him anymore. It’s Obama, it’s muslims, it’s socialist conspiarcies, it’s ________ (fill in the blank). We’re doomed, there’s no way out. Bend over and kiss your arse good-bye!
There’s enough gloom and doom... I know we’re in trouble, if he mixed in just a little bit levity, it would make him palatable.
Isn’t Glenn Mormon. Mormons are supposed to store 1 year of food to prepare for the collapse of society.
Seems he is trying to speed a collapse along.
Problems Hitler had with his mortgage...
http://www.youtube.com/watch?v=bNmcf4Y3lGM
—
Also a “bonus” one...,
“Ballad of Bernie Madoff”
http://www.youtube.com/watch?v=n8pcME4MMj0
“(And taxes, for that matter, at least a home gives some tax breaks!)”
A lot less with our new socalist government.
Let Glenn do what he wants. That's the point of talk radio, you get different options. I don't want them all the same.
Sorry, you don't know what's going on friend.
Glenn Beck can fix this?
Japan's Exports Collapse As Crisis Deepens In Asia
Japan's exports plunged 46pc in January from a year earlier in the latest sign of a catastrophic implosion of trade across Asia and the wider world. Sales fell 55pc to Britain, 65pc to Russia, and 67pc to Spain.
By Ambrose Evans-Pritchard
Last Updated: 8:44AM GMT 26 Feb 2009
The ferocity of the slide adds to fears that the world's second biggest economy is tipping into a self-feeding spiral after contracting at annual rate of 12.7pc in the fourth quarter. A deflation 'mind set' has begun to gain a grip on the Japanese psyche once again. The government said land prices have fallen by an average 12pc in Tokyo, Osaka, and Nagoya since October.
"We don't sees any signs of an early recovery," said Takeshi Minami, chief economist for the Norinchukin institute. "Exports to Asia and especially China have crumbled just as badly as those to the US. That tells us that China's economy is most likely wilting."
The data confirms the picture emerging across the Pacific Rim that shipments to China from every country are in free-fall. It is hard to reconcile this with the optimism of commodity funds betting that a V-shaped rebound in Chinese industrial demand will soon lead to a fresh cycle of rising metal and oil prices. Much of the Chinese monetary stimulus over recent weeks appears to have leaked into speculation on the Shanghai bourse rather than stimulating consumption.
Pascal Lamy, the head of the World Trade Organisation, said yesterday in Tokyo that the global economy was "not even half-way through" the crisis. "Never before have we seen an economic shock of this magnitude. Japan is particularly vulnerable because trade is so central to the economy."
[snip]
ping
The only depressing thing about it is that many people thought it was real and pissed their homes away on crap.
Hitler sure did... see Post #10...
It seems like such a short time since I got into a rather heated exchange with an expert on this forum who thought I was nuts when I said that the runup in housing prices did not represent an actual increase in real wealth in the world.
I still think I was right!
bad analogy.
We have problems not only because people signed up for more mortgage than they could afford but because even more people have been led down the path of their home being an investment.
It is not.
Instead, we need to recall what historically the real nature of a house: a place to live in, sleep, and raise a family.
You should not view your home as an investment nearly as much as it should be viewed in that light.
If one did, there would be a much different perspective on the kind of house you would purchase.
You are forgetting that by 2003-2006 a lot of people were considering their home to be a large part of their family’s wealth. The true value of wages was not increasing. The ability to accumulate wealth in the stock market was gone. Also income through interest bearing instruments was gone as well. So when people were encouraged to view their home as an investment they went along with it. It being the last asset they had that was increasing in value.
Yes, you stated the problem exactly: they treated their house as an investment, not just a shelter or home.
If treated as an investment, people will undertake some risk, as investments should be those reserves that you are willing to lose.
Your house such instead be something that you cannot afford to lose.
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