Yikes, But Duh: Housing Bottom Could Be Two Years Off 13 comments
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The bounce by the financials from the depths of hell last week was definitely a sigh of relief. The “less abysmal” earnings from first Wells Fargo (WFC) [that stagecoach really can run!], JP Morgan (JPM), and US Bancorp (USB) told us the sweeping assumption that all banks are goners was premature. Well, premature at least for now.
Regardless of which side of the argument talking heads take on picking the bottom in financials, most (if not all) would agree that housing needs to bottom if the banks want to be out of the woods. When will housing bottom? Citigroup Chairman Win Bischoff offers his opinion in this Reuters report. Remember, however, Citigroup hasn’t exactly been on the right side of the trade on this whole housing crisis, as made evident by its shares dropping from the $50’s to being a teenager.
“LONDON (Reuters) - Citigroup chairman Win Bischoff has warned that house prices in Britain and the United States are likely to keep falling for another two years.
The chairman of one of the world’s most powerful banks told the BBC in an interview that he expects it will take two years for the markets to stabilise.
He also said he expected the credit crunch could continue through until 2009.
Bischoff told the BBC that there would be redundancies at the bank, which employs 12,000 people in Britain, and warned that some of them would be compulsory.
No further details were released of the interview which is due to be broadcast later on Saturday on the BBC News Channel (Reporting by Paul Majendie, Editing by Jon Boyle)”
Full Article: House prices could fall for two years
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This article has 13 comments:
or, all the to-be foreclosed homes are foreclosed, and all those in the same neighborhood and get their housing values destroyed by the foreclosed homes...these folks get foreclosed themselves. then maybe we kick out half the country onto the streets/tents/teepees, and find ourselvs a bottom.
Everything's a con game with these guys.
How much longer are we, as citizens, going to put up with this?
[Right now, the problem of ARMs adjusting higher has been muted by the drastic rate cuts]
Actually, it's the CAPS that are keeping things in check right now... most of the homeowners I see will have a few adjustments before they reach their max.
What would be a reasonable price for my home. based on my rent? I believe it is around $285K, depending on the cap rate one would want.
He's nothing more than a mindless puppet riding on a donkey of destruction.
SOMEONE WHO HAS NO "WORKING" KNOWLEDGE OF THE REAL ESTATE IS NOT AN EXPERT. Nor can they predict the future.
EVERY one of these idiots has to BE CALLED OUT.
Wall Street anoints themselves as the GURUS of Finance when in reality they have created the WORST FINANCIAL DISASTER IN HISTORY.
ITS BEYOND INSANE.
The way I see it, rising interest rates will only depress prices further as people can only afford so much each month, so prices will have to fall further to compensate for higher interest. Why lock in a low rate if the price is high when you can wait for interest rates to rise and prices to fall further to compensate? Say if rates go up to 12% and prices fall another 40% to compensate, if you buy then at least you bought at a lower price and could refinance if rates eventually go below 12% later on. But if you buy at a high price now at 6% interest rate and the rates rise, you bought at a higher price and can't refinance to a lower rate since rates won't go below 6% for at least 15 years.
www.miamicondoforum.co...