cau- manipulated, how so? When has the real estate market not been manipulated by local, state and fed?
Concerning BK and buyers, if over 2-3 years you've re- established your credit, have good credit scores, earn enough money to qualify then your should be able to start over because its set up that way. You dont like it change the BK laws!
As far as buyers getting into a home with 3% down, the difference today from the crash is they have to qualify, with verifiable income, assets, credit and appraisal. FYI- Realtors stress with every financed buyer until closing because its not easy getting financing today and it shouldn't be.
Homes are vacant most where the markets were misused, abused and confused. Lenders are opting for Short sale over foreclosure to expedite the process so they can get there inventory of distressed homes sold. Those in REO sit and fester for years working through the bogged down system which hurts all.
Author makes some interesting points but doesn't provide any real information/date beyond conjecture as to why. For instance concerning home listing being down "CoreLogic pointed out that listings are down the most in those metros with the highest percentage of mortgaged properties which are underwater. CoreLogic’s perspective confirms what I’ve been saying for two years. Homeowners who owe more than the property is worth now are very reluctant to sell. They are even more unwilling to pursue a short sale and face the possibility of having to pay back the deficiency from the shortfall." So what is he really saying really I mean what???
IMO under water property owners might be unwilling to sell because, just maybe they can afford to pay the mortgage now and or want to hold on for better times. I know several owners paying on a mortgage worth twice the value of their home, WHY? not everybody runs from their debts. Unless you have some data stating otherwise you cant dispute my theories because they are my opinion based on logic, unlike the author who in this specific case provided no data to support his claim, just conjecture.
There's no respite for Greece as retail sales fell 16.4% Y/Y in January, double the pace from the previous month. The grand total for retail sales contraction in Greece over the last four years: 34%.[View news story]
There's no respite for Greece as retail sales fell 16.4% Y/Y in January, double the pace from the previous month. The grand total for retail sales contraction in Greece over the last four years: 34%.[View news story]
You said " they're going to have to find the bottom that they can sustain themselves without having other economies pump in enough to keep them afloat with loans they will never pay back."
Is that possible as a member of the EU, any bottom that they find will be one imposed on them by other members in one way or another
Cyprus' banks reopened for the first time in nearly two weeks with stiff capital controls in place to prevent a wave of fleeing cash. "We expected much more people," says a Bank of Cyprus branch manager. "Customers reacted fantastically." The controls are scheduled to be in place for seven days. [View news story]
On the eight day they will rest because the government is so secure in their belief there will be no runs on their banks that they extended the control from 7 days to 30 days
Where Is Europe Going? Is This The German Plan? [View article]
JC- so this is the best of the worst scenario option, because as usual EU bureaucrats refused to take proper action sooner hoping for a miracle cure instead that didnt cause any pain to them. As a result Cyrpus with its back up against the wall agreed to give up their first borns as sacrifice. IMO- that was a very stupid move because the EUcrats have now showed their hand and even the small investors can see the writing on the wall. The EUcrats have run out of ideas except to confiscate depositor monies. With the banks opening today and indications are depositors biding their time having 7 days of withdrawals controls in place the big question is what happens on day 8.
Cyprus' banks reopened for the first time in nearly two weeks with stiff capital controls in place to prevent a wave of fleeing cash. "We expected much more people," says a Bank of Cyprus branch manager. "Customers reacted fantastically." The controls are scheduled to be in place for seven days. [View news story]
and then on the eighth day depositors will do what?
Troubling to European shares (which had been higher in early trade) is Italy Democratic Party chief Pier Luigi Bersani saying he will not try to form a coalition government, and labeling as "insane" anyone who would try to govern in the current environment. Stoxx 50 (FEZ) -1.4%, with Italy (EWI) and Spain (EWP) both down a similar amount. S&P futures (SPY) -0.4%. [View news story]
Hasnt the MSM been priming the market pumps for the Cyprus contagion affect when banks open today but now they have jumped to Italy, MSM in its desperation running anywhere to find something to fill the headlines hoping they can stay relevant no matter what the cost to everybody else.
A Pending Market Crash Waiting For A Catalyst - The EU Delivers [View article]
Its not surprising in spite of its impressive brainiac members SA community is no different then dumbed down TV audience. See, hear and believe what they prefer to, in other words human nature.
This thread should be called " doom day preppers" for those waiting for the end of days, the eventual markets collapse. Thats not to say one day it wont come to pass again, I mean the last 15 market years has been a roller coaster ride which has left its black mark on many investors, so much so most cannot and or refuse to see any light at the end of the the tunnel for fear it will be a train.
There are strong arguments for and against the markets future prospects but IMO the key is find your own way to muddle through all of it, to try and protect yourself financially from enemies real and imagined.
No matter what charts you have, your reasoning, how people vote, what politicians do, nobody knows how anything will actually play out with any degree of certainty because there is no absolutes as proven by the markets greatest SURPRISE advance in history, born from the most dark and troubling economic recession of 2008. It was the greatest love to hate rally ever known and still is to the detriment of many investors!
Should Cyprus impose a levy of 20% on more on bank deposits, Russia could hit EU businesses could be hit with reprisals, as Russian citizens hold an estimated €30B on the island. "There are a number of large German companies operating in Russia," says former Kremlin adviser Alexander Nekrassov. "You could possibly look at freezing assets or taxing assets." However, Nekrassov doesn't think Russia will cut off gas supplies, as it did with Ukraine in 2009. [View news story]
The best way for Cyprus to find out the answer to the initial question is to give all depositors 72 hours to decide what they want to do, take it or leave their money in Cyprus banks. Simple, direct and unequivocally clear, end of story and also the end of Cyprus but at least the rest of the world would know without any doubt what would be in store for them should they want to consider a similar foolish tactic. IMO this would also squash the world markets concerns for contagion, no politician is going to volunteer to the next causality of such disruptive folly or worse be in the sights of the angry Russian mafia who they stole from.
Tom the only definition I could find was the one you posted "Financialism is an economic system where the primary activity consists of creating and manipulating financial instruments. Financial instruments…are in their original form firmly linked to economic reality. However, when financialism sets in, financial instruments become progressively further removed from their role in supporting commerce in the real world and develop a life of their own."
Do not see any reference to politicians role in your definition. I agree that politicians are willing an eager because they get to bake the cake and eat it to which was the essence of my response. Soon the same will be said about our medical insurance industry, what the politicians did to the banks they have now done to the insurance companies the end result will be no less catastrophic .
Tom you said " The crisis, as previously stated, was caused by Financialism. "
but to be honest you should have ended by saying "which was enabled and legislated by politicians", because they know full well that " those Banks with the gold rule" and those with the power to legislate hold they hold the keys to the bank rules.
Your said about # people working " Demographics don't change like that overnight; perhaps the decline in the participation rate has more to do with a change in the incentives to work. "
Somebody once said " you give a man a fish he eats for one day, teach a man to fish and he eats for a lifetime"
What young people are being taught very well in America today is that our Democratic system is not fair and its all at their expense, 30% of those surveyed preferred Socialism over Capitalism, which means they want someone to give them the fish. The stigma of getting a hand out from the government for many has been eradicated by the social justice movement.
TCM- just like with the recent stock market talk about trouble brewing because of the incorrect belief the majority of the so called dumb money is now investing, selling bonds and buying stocks, the same for housing, people are just now peeking out from under their beds, tip toeing back into the light and we have all the talk about another housing bubble because we have one year average of housing price appreciation of just under 10%.
Same for new sales, condos, multi family, MSM implies markets gone wild yet as posted by SA member BBRO on another thread concerning new housing " Housing Starts to Total nonfarm payrolls ratio... .68%. The housing starts to total nonfarm payroll employment averaged 1.17% in the 1990's, The range in the 1990's was .73% to 1.40%
So even there we see new home starts are well under the historical norm yet that doesn't stop many from providing detailed explanations of why we are in a bubble yet again.
BTW- you emphatically state that when it a sellers markets this is when bubbles occur, only if you assume steady acceleration which in this economic environment is not very likely, but lets say it does, can you tell us what inning this game is now in of nine, 1st , 5th or last, with your explanation as to why,
Why So Many People Have A Bear Market Mindset In A Bull Market [View article]
Who will be buying, not the ones who you lament still have a bear market mindset and sit on the sidelines waiting for the next shoe to drop?
Those sitting it out have been baked in the squat, they wont be buying on any sell off or break outs, they will sit and fester,
Mar. Existing Home Sales: 4.92M vs. consensus 5.03M, 4.95M previous (revised). [View news story]
Concerning BK and buyers, if over 2-3 years you've re- established your credit, have good credit scores, earn enough money to qualify then your should be able to start over because its set up that way. You dont like it change the BK laws!
As far as buyers getting into a home with 3% down, the difference today from the crash is they have to qualify, with verifiable income, assets, credit and appraisal. FYI- Realtors stress with every financed buyer until closing because its not easy getting financing today and it shouldn't be.
Homes are vacant most where the markets were misused, abused and confused. Lenders are opting for Short sale over foreclosure to expedite the process so they can get there inventory of distressed homes sold. Those in REO sit and fester for years working through the bogged down system which hurts all.
Mar. Existing Home Sales: 4.92M vs. consensus 5.03M, 4.95M previous (revised). [View news story]
IMO under water property owners might be unwilling to sell because, just maybe they can afford to pay the mortgage now and or want to hold on for better times. I know several owners paying on a mortgage worth twice the value of their home, WHY? not everybody runs from their debts. Unless you have some data stating otherwise you cant dispute my theories because they are my opinion based on logic, unlike the author who in this specific case provided no data to support his claim, just conjecture.
There's no respite for Greece as retail sales fell 16.4% Y/Y in January, double the pace from the previous month. The grand total for retail sales contraction in Greece over the last four years: 34%. [View news story]
There's no respite for Greece as retail sales fell 16.4% Y/Y in January, double the pace from the previous month. The grand total for retail sales contraction in Greece over the last four years: 34%. [View news story]
Is that possible as a member of the EU, any bottom that they find will be one imposed on them by other members in one way or another
Cyprus' banks reopened for the first time in nearly two weeks with stiff capital controls in place to prevent a wave of fleeing cash. "We expected much more people," says a Bank of Cyprus branch manager. "Customers reacted fantastically." The controls are scheduled to be in place for seven days. [View news story]
Where Is Europe Going? Is This The German Plan? [View article]
Cyprus' banks reopened for the first time in nearly two weeks with stiff capital controls in place to prevent a wave of fleeing cash. "We expected much more people," says a Bank of Cyprus branch manager. "Customers reacted fantastically." The controls are scheduled to be in place for seven days. [View news story]
Troubling to European shares (which had been higher in early trade) is Italy Democratic Party chief Pier Luigi Bersani saying he will not try to form a coalition government, and labeling as "insane" anyone who would try to govern in the current environment. Stoxx 50 (FEZ) -1.4%, with Italy (EWI) and Spain (EWP) both down a similar amount. S&P futures (SPY) -0.4%. [View news story]
A Pending Market Crash Waiting For A Catalyst - The EU Delivers [View article]
This thread should be called " doom day preppers" for those waiting for the end of days, the eventual markets collapse. Thats not to say one day it wont come to pass again, I mean the last 15 market years has been a roller coaster ride which has left its black mark on many investors, so much so most cannot and or refuse to see any light at the end of the the tunnel for fear it will be a train.
There are strong arguments for and against the markets future prospects but IMO the key is find your own way to muddle through all of it, to try and protect yourself financially from enemies real and imagined.
No matter what charts you have, your reasoning, how people vote, what politicians do, nobody knows how anything will actually play out with any degree of certainty because there is no absolutes as proven by the markets greatest SURPRISE advance in history, born from the most dark and troubling economic recession of 2008. It was the greatest love to hate rally ever known and still is to the detriment of many investors!
Should Cyprus impose a levy of 20% on more on bank deposits, Russia could hit EU businesses could be hit with reprisals, as Russian citizens hold an estimated €30B on the island. "There are a number of large German companies operating in Russia," says former Kremlin adviser Alexander Nekrassov. "You could possibly look at freezing assets or taxing assets." However, Nekrassov doesn't think Russia will cut off gas supplies, as it did with Ukraine in 2009. [View news story]
Why Is Everyone So Gloomy? [View article]
Do not see any reference to politicians role in your definition. I agree that politicians are willing an eager because they get to bake the cake and eat it to which was the essence of my response. Soon the same will be said about our medical insurance industry, what the politicians did to the banks they have now done to the insurance companies the end result will be no less catastrophic .
Why Is Everyone So Gloomy? [View article]
but to be honest you should have ended by saying "which was enabled and legislated by politicians", because they know full well that " those Banks with the gold rule" and those with the power to legislate hold they hold the keys to the bank rules.
Why Is Everyone So Gloomy? [View article]
Somebody once said " you give a man a fish he eats for one day, teach a man to fish and he eats for a lifetime"
What young people are being taught very well in America today is that our Democratic system is not fair and its all at their expense, 30% of those surveyed preferred Socialism over Capitalism, which means they want someone to give them the fish. The stigma of getting a hand out from the government for many has been eradicated by the social justice movement.
The U.S. Housing Bubble Is Back [View article]
Same for new sales, condos, multi family, MSM implies markets gone wild yet as posted by SA member BBRO on another thread concerning new housing " Housing Starts to Total nonfarm payrolls ratio... .68%. The housing starts to total nonfarm payroll employment averaged 1.17% in the 1990's, The range in the 1990's was .73% to 1.40%
So even there we see new home starts are well under the historical norm yet that doesn't stop many from providing detailed explanations of why we are in a bubble yet again.
BTW- you emphatically state that when it a sellers markets this is when bubbles occur, only if you assume steady acceleration which in this economic environment is not very likely, but lets say it does, can you tell us what inning this game is now in of nine, 1st , 5th or last, with your explanation as to why,