The $3,200,000,000,000 Question: Why Housing Has Much More To Drop Before It Bottoms

The $3,200,000,000,000 Question: Why Housing Has Much More To Drop Before It Bottoms

It is no secret that having failed repeatedly at the trickle down aspect of QE1, QE2, Op Twist 1, Op Twist 2 (and implicitly LTRO 1 and LTRO 2) as it pertains to the man in the street (if not the man in Wall Street, who was subject to 1-2 years of subpar bonuses which have since regained their upward trendline), the last effort the central planners of the world, and the administration, have is to furiously do everything in their power to reflate housing one more time, following what is already a triple dip in home prices ever since the December 2007 start of the Second Great Depression. Which is why month after month we get seasonally fudged, conflicted and outright manipulated data from various sources how housing has bottomed, for real this time, and things are finally looking up. Remember: with any con game, the key word is confidence, and the US consumers need to regain their confidence. Sadly, as the following very simple chart and accompanying explanation, the answer to the housing question is only one: there will be no housing recovery until much more debt is eliminated. $3.2 trillion to be precise. Everything else is merely fits and spurts of upward action predicated by easy money hitting the market either directly, or via the “REO-to-Rental” stimulus program du jour, which lasts for a few months then promptly evaporates.

Rest here…


4 Responses to “The $3,200,000,000,000 Question: Why Housing Has Much More To Drop Before It Bottoms”
  1. Bobbi, .” Look out our current debt, our soldiers still dying for what” One solution for this problem is to return to the draft. Conscription would place the issue of warfare back in the hands of the people. If you were not here for Vietnam please read all about the politics of war and the people’s involvement in that process.

  2. lies is all they tell says:

    what i dont understand is amny of us getting scammed by the banks now were children durin teh savings and loan scandle. why were those banks disoved and people went to jail for fauds and now no one??? how can this be? scmaming us all in to loans we could not afford and the foreclosing on ahome they dont even own yet our judges continue to think as many asleep americans thatthe banks own thes loans. I am in foreclosure and have a great layer defending me and thank god has ask fro everything but the kitchen sink in discovery but, i get a letter not from the entity forclosing wells fargo bank na but from wells fargo home mortgage denying me a modification i never applied for???? WTF??? and states in the letter, I was denied by the investor who ultimately owns my mortgage. SO, when we all apply for a modification the investor “who ultimatley” owns our mortgage denies us and then when we go to forclosure the bank we applied now by miracle now owns the mortgage??? i am as confused as ever wtf???

  3. stripes says:

    The people don’t realize we are still bailing out these crooks and they are not paying their bills. It is simply an all out robbery to weaken the people. Stop paying and buying their corporate lies. THEY are in dishonor. People don’t realize WE THE PEOPLE already paid for everything. OBAMACARE is fascism, it is a sneaky ponzi scheme to fund future wars and microchip the people into debt slavery. The people must reject all “fixes” for fraud.

  4. Bobbi Swann says:

    CONsumer confidence? There is none! Someone explain to me how the people can have consumer confidence when wall street commits such crimes and no punishment, no jail, no arrests and all the while they are protected by the very people we keep voting in office. We have had someone in Washington fighting for the people for well over 20 years against big government but when he runs for president he is tagged as “crazy”. Look out our current debt, our soldiers still dying for what? Homelessness, poverty, rising unemployment, rising crime…and you tell me who’s the crazy ones that are STILL in power? Vote Ron Paul.

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