The Story Of 2011 Will Be The Second US Housing Crash

Business Insider ^ | 1/3/2011 | By Ilargi on The Automatic Earth.

[Chunga85]

I’d like to start off the year with another piece on the US housing situation as it looks to be heading into 2011, and its relation to the overall economy. In an interesting quote I read, economist Patrick Newport at IHS Global Insight says: "The economy has to recover for the housing market to recover, not the other way around." Thought I'd throw that in there, because it seems to get lost in translation from time to time.

Talking of quotes, I was going through the material I read the past few days, and I couldn't find a proper way to cut short the quotes and still provide you with the story as I see it, in a way that would be both comprehensive and clarifying. In other words, I think it's the quotes that tell the story, and without them the story is just not there. So this is going to be a long one, and I think the least I can do is to say as little as possible, and just let you absorb the data. And I sincerely hope that after you've gone through them, you’ll see the story I’m talking about.

Many people claim Stoneleigh and I must be crazy, and doomers and all that, for predicting an 80%+ drop in real estate values, but we in turn can't seem to understand why home prices would fall "only" 20% from here, or why they would fall "just" 40%, as Mish suggested for instance. We think that more than 20% is in the cards just because of the bubble coming back to earth; we think 40% is certain because of the bubble bursting, and we think 80%+ will then happen because the bursting bubble will take the entire financial system down with it. Pretty simple really.

[hennie pennie]

>>>> "Ironic that the boomers have been encouraged to use their homes as an investment for years and years." <<<<

YOU are a very observant perceptive person... THAT wouldn't have occurred to me for many months... and you are right, isn't that just "ironic," and yes, couldn't the conspiratorial have a field day with such "irony"?

[driftdiver]

‘couldn’t the conspiratorial have a field day with such “irony”?”

No conspiracy needed, its real. George Soros, George Bush Sr., Clinton and others have all spoken openly about the new world order. We see the world elites having meetings all the time. We know many of the demonstrations are manufactured.

We also know that for the last several decades govt policies have always moved to the left. We’ve become a very socialist nation.

An overnight change would have been impossible. The socialists have been working a long time to quietly push their agenda while we were all fat dumb and happy.

You must first break a system before you can change it. Call me crazy but this is all about those with money seeking to take the power.