Posted on 03/02/2009 7:33:24 PM PST by sickoflibs
Glenn Beck : ”We all want to succeed. We all want our country to be strong again. But are we doing the right things to get us there?...I want you to listen to something no American can disagree with. It’s really good. It’s president Obama talking about fixing all the problems caused by the housing crisis.… But I want you to listen to this closely and ask yourself does this sound reasonable? Watch this clip:”
Obama:” Even if you’re your neighbor hasn’t been hit by foreclosures, you likely feel the effects of this crisis in other ways; companies in your community depending on the housing market, construction companies, home furnishing stores painters and landscapers, they are all cutting back and laying people off. The number of residential construction jobs has fallen by more than ¼ million since mid 2006. But if we act boldly and swiftly to arrest this downward spiral then every American will benefit”
Glenn Beck : “There’s the idea. We want to arrest the downward spiral. Oh, would that be true? Wouldn’t be great ? Can it be done? Has it ever been done before? If we can arrest this downward spiral we all won’t suffer, because we really are. Remember, because he said if someone’s home goes down in value we all suffer. Let me show you the history in home values from 1890 to 2010..”
Glenn then shows the history of housing prices and how in inflation adjusted terms they bounced up and down around 100K. He goes though each boom or bubble and each bust and show that 100K was the magic line the houses always fell below. At the end he shows our most recent housing bubble where houses were twice that level (200K) and are slowly coming down. He also points out how much money the government has borrowed and how much housing prices have dropped since peak, still only down to 150K. “How much more will we spend before housing prices get to great depression levels?” He asks.
Entire video at : Glenn Beck Housing Market Graph
If you realize both parties in Washington think our money is theirs and you trust them to do the wrong thing, this list is for you.
If you think there is a Santa Claus who is going to get elected in Washington and cut a few taxes and spend a few trillion and jump start the economy, and get our lost money back, this list is not for you.
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Do we all get hurt if prices go down like Obama says? Not buyers! He is screwing them with the high prices, And if they are young he is double screwing them with the debt Too. But they wanted change!
The GB housing graph is not new. There are additional supply and demand forces that are ignored in the graph.
Sellers too!
Until housing returns to 33-38% of gross income it will be unaffordable and banks won't make loans. IOW, sellers have no one to sell to.
Real Estate is going to decline at least another 20%, probably more since taxes are going up and incomes will go down as a result. All the govt is doing is prolonging the pain.
Overinflated housing prices have a lot to do with why we are where we are in the first place. Why would we want to blow more air into that bubble knowing this? Because it’s not about the economy, it’s about economic populism, it’s about votes and elections. The only responsible way to actually fix the housing problem is to create lots of new middle class jobs so we can turn renters into owners. That’s what the “stimulus” bill was supposed to do but I think we all know it will fall short and we all know why. Obamanomics will be a disaster. Democrats think they will be able to just blame it on Bush when it fails. We can’t allow them to do that. This needs to be a central plank in our platform, making them own thier failures and making sure America understands why they own it. If we fail to do this, we’ll lose again in 2012 and they know it.
So how would you reinterpret that graph? What would your graph look like?
They will get away with it. Every time someone in the media begins to talk about deficits the immediate response is well "the Pubs did it to" and everyone gets quiet.
Granted Pubs spent and they spent more than they should have, but their spending would NOT have tanked the economy. Whoever withdrew billions electronically blew the bottom out once the Dems had everything else was in danger. And that was NOT a Pub, and no one calls them on that either. Pubs? It is time to stand up and tell the truth for the sake of the country.
The information is all out there. Anybody with a 1/2 brain who is paying attention understands that house prices MUST fall and the massive debt swamping our economy MUST be destroyed and a certain measure of pain MUST result from this natural correction.
Good post. That graph showing current housing prices simply says it all. No doubt. House prices will come back to historic norms. There is no stopping that. Nothing. We can do this the easy way by letting banks fail, letting people lose their homes and letting the housing industry collapse. Or we can do this the hard-way by trying to fight this necessary destruction of debt.
We obviously are doing it the hard way, and that is just going to make the depression deeper, longer and more painful.
Such idiots.
Very good post. Clear as glass. Thank you.
I alays bring up that Reagan inherited a worse economy than Obama. In 2 years it was up and running again. When 4 years from now we have gone nowhere but down they will blame “The failed principles of George Bush” A friend of mine (liberal) told me that the economy follows 5-6 years after the President. So I said “wow, so that cranking good economy of 05 and 06 was George Bush’s fault?” Well, that was still from Clinton was the response. It will be GB fault until 2020 or so.
That all sounds plausible...but what do you suggest for those who bought what they could afford and made reasonable down payments? If Glenn is right someone could have paid $200,000 in 2006, put down $40,000, and STILL be upside down for 15 years plus...
Sellers also can’t sell if they owe double what the home is worth unless they wish to deplete all their savings and investments, which aren’t worth all that much now anyway.
Not saying gov’t should prop them up, but to act as if only the irresponsible will suffer is wrong.
“Anybody with a 1/2 brain who is paying attention understands that house prices MUST fall and the massive debt swamping our economy MUST be destroyed and a certain measure of pain MUST result from this natural correction.”
Yep. I work in the housing business, and I have been saying for about three years that there was a collapse coming. I knew that California, Florida, Las Vegas, etc., were absolutely overpriced, and that their collapses would badly damage the economy.
Here in central Texas, our market was never overvalued. I would watch sellers from CA, FL, and LV bring their money in here and buy ridiculous amounts of property with no real concept of value. Honestly, I am glad the bubble has burst. The situtation we had was unsustainable, and the longer it went on, the worse the problem was going to get. Unfortunately, Obama is going to make things much more painful than they should be.
Things have not been terrible in my business for several reasons...and I am thankful to God for each one! I do understand that a lot of people are hurting, and I hope this passes soon.
PING to watch later. Thanks for posting.
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