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US Housing Crisis Is Now Worse Than Great Depression
CNBC ^ | 06/14/2011 | Jeff Cox

Posted on 06/14/2011 10:11:37 AM PDT by Rational Thought

It's official: The housing crisis that began in 2006 and has recently entered a double dip is now worse than the Great Depression.

Prices have fallen some 33 percent since the market began its collapse, greater than the 31 percent fall that began in the late 1920s and culminated in the early 1930s, according to Case-Shiller data.

The news comes as the Federal Reserve considers whether the economy has regained enough strength to stand on its own and as unemployment remains at a still-elevated 9.1 percent, throwing into question whether the recovery is real.

"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," Paul Dales, senior economist at Capital Economics in Toronto, wrote in research for clients.

(Excerpt) Read more at cnbc.com ...


TOPICS: Breaking News; Business/Economy; News/Current Events
KEYWORDS: bhoeconomy; democrats; economy; hopeychangey; housing; obama; obamadepression; obamanomics; recovery
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As goes Housing so goes the Economy.

What is that Obama supporter chant......oh yea.....4 More years!

1 posted on 06/14/2011 10:11:43 AM PDT by Rational Thought
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To: Rational Thought

They basically have nothing to run on. 4 more years of what?.. higher gas prices, more expensive food, higher unemployment, collapsing home values, etc.

It should be a landslide whoever is the nominee.


2 posted on 06/14/2011 10:20:07 AM PDT by nhwingut (Palin '12... Accept No Other)
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To: Rational Thought

Strength in the housing market in Michigan?! That’s one of the worst state hit by all this economic craziness. That doesn’t make sense at all.


3 posted on 06/14/2011 10:20:15 AM PDT by Peter from Rutland (!@)
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To: Rational Thought
I've heard that the Case-Shiller index is somewhat skewed based on its top 20 housing markets limitation. What is the percentage up or down overall in relation to the housing boom?
4 posted on 06/14/2011 10:24:21 AM PDT by frogjerk (Liberalism: The ideology of envy.)
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To: Rational Thought

More fear-mongering from the fringe media, eh?


5 posted on 06/14/2011 10:25:59 AM PDT by blam
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To: nhwingut
I saw Debbie Wasserman Schultz on TV making the claim that Barack Obama has succeeded in turning this economy around.

A case could be made for that ... but that in the way she is hoping.

6 posted on 06/14/2011 10:36:46 AM PDT by ClearCase_guy (The USSR spent itself into bankruptcy and collapsed -- and aren't we on the same path now?)
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To: Rational Thought

Obama is a disaster of a President. I’m shocked that some ambitious Democrat hasn’t stepped forward to challenge him in the primary.


7 posted on 06/14/2011 10:37:38 AM PDT by weston (As far as I'm concerned, it's Christ or nothing!)
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To: frogjerk
I'm not sure I follow your question.

I believe the decline is based upon the top of the market. Much like the stock market at a top, there were a large number of purchases made at the top.

In some instances I've seen, housing prices are actually back to levels not seen since the late 80’s.

Regardless, there's no evidence that prices (overall) are going to stabilize soon. Still no jobs, still more foreclosures, still very few capable buyers.

8 posted on 06/14/2011 10:39:13 AM PDT by Rational Thought
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To: Rational Thought

2012 - ANYBODY BUT OBAMA! Is going to be shouted much louder LOL


9 posted on 06/14/2011 10:53:12 AM PDT by GloriaJane (Pro Choice = Pro Death - Pro Life = Pro LIFE!)
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To: Rational Thought

What I’m trying to say is with the recent decline in housing, how does that compare with the bubble that we had in the 2000s? Meaning, is the housing market still up overall or have all of those gains been wiped away?


10 posted on 06/14/2011 11:01:02 AM PDT by frogjerk (Liberalism: The ideology of envy.)
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To: Rational Thought

We just refinanced our home. Dropped 2 1/2 percent interest and 5 years off the length of the loan.

We have a very low debt to income ratio and perfect credit. The lender, bound by new Fed lending regs, made the process arduous and long. I can’t imagine how hard it would be for a young family with just barely enough income to get into their first home. This will greatly subdue a chance at housing recovery.


11 posted on 06/14/2011 11:05:15 AM PDT by lurk
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To: nhwingut

Obama’s mantra will be: Bush’s Fault! Then he’s going to try and scare all the old folk on Medicare and Social Security. And he will actually attempt to convince people that his health care program is a great deal.

When you haven’t got a record to run on, always go to harum scarum!

-Rex


12 posted on 06/14/2011 11:10:14 AM PDT by RexBeach (Mr. Obama can't count.)
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To: Rational Thought
This makes sense. The Great Depression was set up by a stock bubble fueled by stock prices bid up by rubes who took out loans to catch the updraft.

The Great Recession was set up by a real estate bubble fueled by housing prices bid up by rubes who...

13 posted on 06/14/2011 11:18:40 AM PDT by Dick Holmes
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To: Rational Thought
US Housing Crisis Is Now Worse Than Great Depression


14 posted on 06/14/2011 11:25:03 AM PDT by massmike (Massachusetts:Stopped hanging witches;started electing Kennedys.Coincidence?)
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To: frogjerk

Gotcha...sorry about that.

From what I’ve read, on average we’re back to levels from 10 years ago.


15 posted on 06/14/2011 11:36:29 AM PDT by Rational Thought
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To: Rational Thought

Finally prices are within our reach, my wife and I hope to close on our first home next month.


16 posted on 06/14/2011 11:51:39 AM PDT by ßuddaßudd (7 days - 7 ways a Guero y Guay Lao >>> with a floating, shifting, ever changing persona.....)
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To: Rational Thought

Thanks for the reply. Lost decade anyone?


17 posted on 06/14/2011 11:59:47 AM PDT by frogjerk (Liberalism: The ideology of envy.)
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To: ßuddaßudd

In bad times, I’m happy to hear someone doing well. Congratulations!


18 posted on 06/14/2011 1:56:21 PM PDT by Rational Thought
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To: weston

We have to be careful to paint all democrats and Obama with same brush on this one. It was the Democrat polices that Obama championed that caused ....

The reason is that we don’t want the Dem’s to not run Obama, and try to substitute someone else. We need to make sure that all Democrats have this economy and their disastrous polices tied around their necks like mill stones.


19 posted on 06/14/2011 2:16:22 PM PDT by taxcontrol
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To: Rational Thought

“....throwing into question whether the recovery is real.”

Are they serious? Actually, if it wasn’t for the MSM trying to create the impression that the economy was ‘recovering’, things would probably be even worse.


20 posted on 06/14/2011 2:19:00 PM PDT by pieceofthepuzzle
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