Posted on 09/30/2011 11:24:02 PM PDT by 2ndDivisionVet
Home prices are unlikely to recover before 2020 and mortgage defaults will persist for years, says a survey of bank risk managers out Friday.
The survey conducted by the Professional Risk Managers’ International Association for FICO, found that 49 percent of respondents do not expect housing prices to rise back to 2007 levels for another nine years. Only 21 percent of respondents said they would.
The findings, which authors called “a decidedly pessimistic outlook”, are a sharp reversal from cautious optimism the survey respondents expressed late last year and in early 2011.
In addition, 73 percent of surveyed bankers say they expect mortgage defaults to remain elevated for at least another five years. And 46 percent believe mortgage delinquencies will increase over the next six months...
(Excerpt) Read more at cnbc.com ...
This was a no brainer if you are in real estate. Life is a loser every day in this shit.
I have been saying this for the last couple of years. We are just in the beginning of this economic depression. The real pain is probably coming around 2013 and will last until, at least, 2020.
I can’t wait to see how counties are going to deal with real estate taxes. Remember Reagan said “a raising tide lifts all boats”, and then BamBamKennedy said he would “lower the sea level”. Well in a manner of speaking BamBamKennedy has indeed lower the sea level.
They are out here. Liberalism is a mental disorder. Look at the majority of teachers, they teach capitalism is 'evil'. And then there are some who are born and bred democrats who attend so called 'right-to-life' churches, that believe to vote for a republican is akin to voting for the 'devil'.... I mean really now WWJD is the depth of their religious teaching. And Jesus would house the homeless and set up soup kitchens for the poor. IT is wholesale/retail deception and there is no way to have a conversation. The older a liberal lives the more hard headed they become because it is like a 'dream' come true and reality of the situation is always some one else fault. ALWAYS.
Couldn’t have said it better.
And, yet 2007 levels were inflated by toxic political and banking policies that have been in place for the last 20 years. In the meantime, real incomes (adjusted for inflation) have been in decline since the 70s. Much of America has been living on credit for the last 30 years (e.g., credit cards, student loans, second mortgages, etc.). We have a massive deleveraging that needs to take place in the financial system that will takes years. This article just touches the surface in one particular economic sector.
My hope than would be some sort of tax overhaul that would lower rates and be simpler. All this can be done in 6 months or less. As the jobs start to flow, you will see a visible change in attitudes and home prices will begin to heal. People's attitudes will be totally different even if the job rate falls only to 8% from 9%. It will be going the right direction and we will have faith that things will get better.
Right now, we KNOW that things won't get better and Obama is playing "Whack a Mole" with anyone that wants to make money. The only reason we aren't growing and hiring right now is Obama and the Dems, period. It has nothing to do with consumer spending. Business is making some money and are just trying to hang on for 13 more months. 2020 is just to far away, IMHO.
Now, if Obama were to win 4 more years, America is finished, we won't come back. He will be lame duck and nothing to lose. It will be "comrade city" within months and we will ride to the gulag on mopeds. Money will be bullets and beans.
It needs to allow prices to drop and clean out the bad debts.
This isn't as bad as it may seem at first glance. Real estate cycles are much longer than stock market cycles. To go peak-to-peak in 13 years is not unusual for real estate.
Since the media can't figure out that the reason Bank Of America is charging a monthly fee for using a debit card is that they are limited in what they can charge the merchant, then the media will never be able to figure out any of the other problems that cause so many the symptoms that turn into economic troubles that the media can understand. And if they don't understand it, they can't explain it to the little people who vote. In the meantime, the media blames the greedy private banks for the fee increase.
And why are the banks limited in how much they can charge a merchant for a debit card transaction? Start working backwards and when you get to Chris Dodd and Barney Frank, you're getting warm.
I agree. If we can win in 2012 it will be such a relief from this nightmare things will get better.
Well said - I’m glad to have bought within my means and paid off early - my house is an asset instead of an anchor.
I think your time-line is very optimistic. Unless there are 60 Republicans in the Senate expect Dems to filibuster any attempt to repeal Obamacare, and do not count on the enthusiastic support of the longer serving Republican office holders. Dodd-Frank is going to be more difficult to repeal, although revising might be easier, and get some Democrat support. Comprehensive tax reform while having overwhelming support, is likely to take most of a term of congress (Obamacare took about a year).
While much regulatory reform can be done without congressional support, it will make a lot of enemies within the permanent bureaucracy, and their allies. Expect all of these changes to be demagogued by the supporters of the regulatory state (i.e. press and "progressive" NGOs).
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