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15 Bone Chilling Signs That Part Two Of The Double Dip Housing Crash Has Begun

These are harrowing times for anyone trying to sell a home or for anyone who is trying to make a living in the housing industry.  But unfortunately, there are a whole lot of signs that things are about to get quite a bit worse.  U.S. home sales have hit record lows in recent months.  An increasing number of sellers have started to reduce their asking prices, and there are signs that home prices are already starting to slip substantially in many areas of the country.  Meanwhile, the inventory of unsold homes in the United States continues to rapidly increase. Home foreclosures and bank repossessions of homes continue to set all-time records.  What this all means is that the U.S. housing market is being absolutely flooded with homes for sale at a time when there are very few buyers.  There is way too much supply and not nearly enough demand and as a result home prices are being pressured downward.  The home buyer tax credits that the U.S. government was bribing home buyers with helped stabilize the U.S. housing market for a while, but now the tax credits have expired and things are getting scary out there.

In a previous article about this housing crisis, I detailed how there simply is not going to be a “recovery” in the U.S. housing market until there is a jobs recovery.  But at this point, even the most optimistic cheerleaders for the economy are admitting that unemployment is going to remain high for quite some time.

But if the American people do not have good jobs then they can’t buy homes.

In addition, banks and lending institutions have dramatically tightened lending standards.  It is now much, much, much harder to get a home loan than it was five years ago.  It is even much harder to refinance a home loan at this point.

So if a large segment of the population is struggling to even find a job and if a lot fewer people are getting approved for home loans, then where are all of the buyers going to come from to turn the U.S. housing market around?

It just isn’t going to happen.

In fact, as the U.S. economy continues to struggle greatly, even more Americans are going to lose their jobs and even more Americans are going to default on their mortgages.  Already the number of foreclosures in the U.S. is alarmingly high, and so what happens if the U.S. economy experiences a significant downturn in the months ahead?

Right now there are very few reasons why anyone should expect improvement in the U.S housing market any time soon.  But there are a whole lot of reasons why we could be looking at a very serious downturn in the U.S. housing market in the near future.

The following are 15 bone chilling signs that part two of the double dip housing crash has begun….

#1 The percentage of home sellers who have decreased their asking prices at least once has gone up for three months in a row.

#2 According to Trulia.com, 26 percent of all homes currently on the market in the U.S. have experienced a price reduction at least once.

#3 According to Bloomberg, housing prices in the United States are likely to decline for another three years as 12 million more homes get put on the market.

#4 Total housing inventory available for sale in the United States increased 2.5 percent to 3.98 million in July, which represents a 12 and a half month supply at the current sales pace.  This is a stunningly high figure.

#5 According to Mark Fleming, chief economist for CoreLogic, 36 states experienced home price declines in July, twice the number in May and the highest number since last November when prices nationally were still declining.

#6 In July, sales of existing homes in the U.S. fell 27 percent and sales of new homes plummeted to the lowest level ever recorded.

#7 Fannie Mae, the biggest U.S. mortgage finance company, is now projecting that U.S. home sales will experience a 7 percent decline for the year.

#8 The Mortgage Bankers Association recently announced that demand for loans to purchase U.S. homes has sunk to a 13-year low.

#9 Construction of new homes in the U.S. and applications to build new homes in the U.S. both fell to their lowest levels in more than a year during the month of July.

#10 One out of every seven mortgages in the United States was either delinquent or in foreclosure during the first quarter of 2010.

#11 As of this March, U.S. banks had an inventory of 1.1 million foreclosed homes, which was a new all-time record and which was up 20 percent from one year ago.

#12 CNBC is reporting that the nation’s banks repossessed a record number of homes in August.

#13 According to Mark Zandi, the chief economist at Moody’s Analytics, approximately 2 million more homes will be repossessed by mortgage lenders by the end of 2011.

#14 As of June 30th, 23 percent of all residential mortgages in the United States were “underwater”.  In other words, as of the end of June 23 percent of Americans with a home mortgage owed more on their mortgages than their homes were worth.

#15 The head economist for Fannie Mae, Douglas Duncan, recently stated during a radio interview that seven million homes in the United States are either vacant or are in the foreclosure process.  That is one gigantic pile of homes.  How in the world is the U.S. housing market possibly going to find buyers for all of them?

The Beginning Of The End - The New Novel About The Future Of America By Michael T. Snyder
  • http://buyerbeaware.blogspot.com David Jeremiah

    Thank You for this Detailed Information. The Financial experts who always know the truth in the Main Stream Media do not divulge the truth even to the Last Moment of the fall because they are paid by the Fiat Financial Industry to say Lies, Lies, and Lies even to the end so that the those who HAVE, may squeeze the last investment out of those who are least informed.

  • Justa Guy

    How is the U.S. housing market going to find buyers for all of these houses? I have been pondering a scenario for a while now. I do not know if this is happening, and I consider it a real possibility, but I don’t know from an economist’s standpoint if it is even workable. The scenario goes something like this: China is overpopulated. China has a tremendous amount of U.S. dollars, many of which they will never be able to use for anything. Could China be accumulating all of these dollars to “buy” America, rather than fight militarily, to get our land for their people to live on? Could China possibly coerce our elected officials into somehow modifying our political system to allow for communism to enter it? I can imagine the politicians would be only too glad to sell all the surplus homes to the Chinese government for their people to live in, in exchange for somehow allowing the communist Chinese government to vote on behalf of the people living in those houses, in our elections. Coming soon…The United States of China?

  • http://www.augustarealestate.org Augusta RE

    I know its scary out there. The unemployment situation needs to improve and home buyers need to come off the sidelines. It would be nice to see all that money that went into the stimulus used more to help people keep their homes because more foreclosures are going to make the situation get worse.

  • J

    Great article. I do not even want to ‘own’ the house I live in. Housing prices are expected to continue to decline for a couple more years. Unless I got the deal of a century, why would I buy a house now knowing it will continue to lose value? Why would a bank loan me money knowing it will continue to lose value? In my view, look at the jobs in the area and multiply the annual salares by two – that should give you an idea where the avg price should be. If middle class jobs (35k-75k) leave an area, the housing price needs to come down. Also, keep an eye out for the dual income dilemma and its impact on housing ‘value.’

  • El Pollo de Oro

    In many areas, property owners and people with mortgages are getting hit with a double whammy: declining property values combined with escalating property taxes. It’s a nasty combination. With millions of formerly middle class Americans having become unemployed and municipalities having lost a ton of tax revenue, those municipalities are trying to offset the loss any way they can–fining people left and right, raising sales taxes, raising property taxes through the roof…..you name it. The problem with all these dramatic property tax hikes is that they have the effect of kicking the real estate market when it’s already down. Having an underwater mortgage is bad enough–watching your property values plummet if your mortgage is already paid off is bad enough–but imagine being told that your property taxes are about to soar on top of all that misery. And when folks can’t afford to pay those higher property tax rates, you’re going to see a lot of tax-based foreclosures in addition to all the mortgage-based foreclosures we’re seeing.

  • Not so Mad Max

    For any Dimwit out there who thinks recovery is around the corner go a Realty Track punch in their zip code and watch what comes up. The Banks have a “Shadow Inventory” of homes that are technically in foreclosure but they have not filed the paper work, or the note payer has walked out and the bank as the home but has not put it on the market. The banks don’t want to crash prices because there are buyers mainly dimwit “investors” who are going to wind up lousing their A$# in my opinion once the hard asset prices crash and communities prices head for the moon. As I have said before entire subdivisions will have to be bulldozed, or left for “Sovereign Citizens” AKA Squatters.

    Too much crap is swimming around out there Commercial Real Estate, Residential Real Estate. Global Sovereign Debt, Peak Oil, Jobs moved off shore, Consumer debt, an out of touch elite, crashing salaries for this to last much longer. Things will not crash right away it will be incremental as the bulbs who know things are in trouble, try to kick the can down the road hoping for a miracle. They’ll keep it going for a little wile I’m watching bond prices, that might be the trigger for the death plunge.

    Have a happy nightmare.

  • Kathryn

    I read all of your postings and nobody can agree as to how go about “fixing” the country. But can anyone tell me how individuals can make the situation at least better for themselves… for their community? I see a lot of problems on this website but not a whole lot of solutions; which many of us need right now. I’ve started by buying a book called The Encyclopedia of Country Living which pretty much tells you how live without grocery stores but beyond that what else what can we do? I really think we should start pooling together our self-sufficiency ideas… what good is this information without constructive solutions behind it?

  • Bob

    Heres athought justa guy, japan did that in Hawaii during the 70′s-80′s. They bought so much realestate in hawaii and drove the prices sky high. But then when the japanese economy collasped in the 90′s hawaii’s re prices dropped accordingly. Besides we have the most liberal real estate laws in the world. Anyone anywhere can buy our realestate, currently Britian owns more of our real estate then any other foreign country. Because the re prices are so low, theres already a stampede to buy our condos in Florida and elsewhere, by foreigners. So, no China is not going to get into our re market. You will see chinese who immigrate here buying up business’s that are profitable. I’ve dealt with many foreign buyers. Until our salaries are on parady with home prices, well its just going to get ugly for the next 5-10 years. Japan never recovered from their collapse for nearly 20 years. Scary thought, hmm? They believed their jobs were secure for their life, but the 90′s changed all that. They had a very big suicide rate after that. What future jobs will flush our unemployment rate down to 5%, none. Consider this, new workers coming into the job market, over a million a year. So, where are they going to get a job? During the early 90′s I was laid off and tried to get a job, due to my age, wasnt going to happen. So, I became self employed. With no factories, or manufacturing, we’re screwed. Unless you want to be a health care worker which pays min wage. So, house prices will be coming down, and its only going to get worse.

  • Stray Cat

    One possible scenario to where the houses will go….. A report yesterday said BHO is proposing buying up all or a large portion of these vacant homes and making them goverment housing. Hmmm, Section 8 housing anyone? “Sorry, you live in GOV’T HOUSING. NO guns, NO smoking, No booze, NO backyard gardens, NO backyard chickens! We can’t have you being self reliant, you might start getting ideas about (shudder) freedom.”

  • eddie

    I lived in the US in the early 60s’ and loved it. Its sad to see how much it has fallen. Mind you, I have always thought the American Dream should be the American Lie!!

  • Change NOw

    the solution is social change.
    It is no measure of mental health to be well adjusted to a profoundly sick society.
    We do not want your money we are here to help.
    Take the time to do some reading, and understand change is not to be feared. What should be feared is remaining in this sick outdated social structure that promotes exactly what we are seeing.

  • Brian

    Kathryn,

    One person offering valid solutions is Ellen Brown, author of “Web of Debt:An analysis of the Federal Reserve and the Money Trusts.”

    Her online video “The Real TEa Party Begins Here” (8 min) is an easy overview. She’s not related to the current “Tea Party.”
    Tap into her more lengthy presentation online about the deepest cause of the current financial collapse available in audio (reportedly

    video too, but I couldn’t find it), “The Financial Hijacking of America: How and Why to Escape the Web of Debt.” One worthy location of the audio is through TUCradio.org.

    Her most valid point: state-run banks. The Bank of North Dakota is a highly successful state-owned bank founded in 1919. North

    Dakota’s economy is thriving. Brown promotes solving the budget and financial crisis by creating state-owned banks.Credit would then be a public utlity, which is what it should be.

    Washington, Illinois, Michigan, Massachussets, and Virginia have bills pending to create state-owned banks.

  • Brian

    Bob,

    You’re right. Back the 90s, when everyone owed Japan, Japan was thriving and the Japanese really did think they were secure for
    life. How did that “collapse” happen? Ellen Brown,in “The Web of Debt,” ( I mentioned it before in a previous post, points out that the Bank of International Settlements, a capstone of the Global Finance System and unregulated private bank, raised capital requirements from 6% to 8% and wiped out the Japanese banks.
    Incidentally, as a possible solution for others, what field of self-employment did you go into when things were so bad before?

  • SoManyVariables

    How do the baby boomers fit into all of this? We have been hearing for years about how there will be a shortage of workers once all of our baby boomers retire? Will this somehow even out the job market/employment side of the equation?

  • Mark L

    Kathryn
    We have been putting food up and stocking up for some time now. Your thought of “pooling together our self-sufficiency ideas” is great. But I am not sure that networking with others we don’t know is a good idea from the stand point that when the stuff hits the fan those who did not put up for themselves will want to take from those who did. Its the old grasshopper and ants story. One of the biggest obstetrical s I run into is buying meat. For some strand reason those who raise grass fed beef or range fed chickens feel they have to charge higher prices forcing me to become a vegetarian, not that, that’s a bad thing, but going from carnivore to herbivore is tougher then trying to stop smoking. Fortunately for us I hunt wild game but how long will it be before the Gov steps in and regulates or puts a halt to that? I found some food co-ops on the internet but even they are expensive. The only solution I can offer Proverbs 3: 5-12

  • MARK LEVIN

    KAAAABOOOOOMMM!!!!

  • Jammin

    Prices go up and and can just as well come down. The more that goes into those interest only loans that only went back into the greedy banks, left no money to go back into commerce.

    Prices coming down with equity only loans will leave money to be put back into commerce and society.

    Housing is a bad investment anyway. The price of housing should be much less than it is now and the banks should be forced to sell it, being the land belongs to the “we the people”. There should be laws that don’t let housing go up more than 1-1.5 % a year. This would stabilize the economy.

    There are 2 things that create inflation. Energy and land cost and the energy cost has a direct tie in to land cost.

    If people have to pay more for land and housing, they demand higher wages and thus start to kill the economy. If everyone tightens their belt, we all will starve in the end.

  • Craig

    Am I the only person here in America that has the definitive answer to the whole mess that we are in? Duh! the only answer to this mess that would fix every thing overnight. FORGIVE ALL DEBT public and private. End of problems. No more foreclosures no more national debt no more financial problems. Every body starts all over again. You would have Americans with a lot of money to spend and put scores of people back to work. But those greedy bankers would rather see the whole country go down the tubes than forgive one cent of debt. Curse them all. You now know the answer what are you going to do with it?

  • BlueBird

    First time here & I like your articles. Yes, it’s going to get worse & then worse again for the nxt 5-10 yrs. Why?

    Well, the 1929 depression lasted 12 yrs. & it took a war to get America out of it so be prepared for a long-term housing crisis.

  • mole

    once upon a time the average wage was 7500 dollars and the average house cost 7500 dollars…today the average HOUSEHOLD wage is 48,000 …….

  • http://www.youtube.com/user/RepublicConstitution?feature=mhum RepublicConstitution

    This seems to be more than a simple “double dip” recession, as it appears to be a long-term and slow depression emerging. It would probably be best to start with abolishing the Federal Reserve, which is neither federal nor a reserve. Then we slowly return to an economy based upon sound principles and precious metals (platinum, gold, silver, etc.).

  • joe

    I am attempting to go through a short sale myself. Basically, the job market in the area collapsed, and I needed to relocate for work.

    My home has dropped 100k in value in two years. Short sale offers keep falling through. The buyers don’t even want to do the home inspections. I am about to drop the home another 10 or 20 k.

    My life savings is gone. 10 years of hard work flushed down drain.

    The US is done. That is what happens when labor rates now have to compete with Chinese slaves and Indian poverty.

    Just a message to the Prince-Harvard-Yale boys, nice long term thinking. Do you think you will come out ahead on this?

  • aj weishar

    We have the unsecured credit crash looming in the background. More and more people are behind on tens of thousands in credit card debt. There is also a huge hidden debt in the vehicle finance industry. Vehicles are being turned by finance companies the same way the houses were. They give loans on late model low mileage vehicles to marginal debtors. When a payment is late, they seize the vehicle and resell it to dealers before the debtor can recover it. A single vehicle can have a 6-10 foreclosed loans attached to it.

  • brumpfschmlog

    The solution is to get the government and quasi-government out of the housing business. Let prices fall naturally till people can afford them with the wages they make. The banks will fail? So what? They’re just a bunch of stinking rich thieving parasites. Get the government out of the banking business. Get the government out of the race business, too, for Pete’s sake (Pete is a very commonsense guy). Get the national government into the business of doing what it needs to to maintain the nation, like maintaining the borders and maintaining industry in this country — yes, PROTECTIONISM! Protectionism – through tariffs and taxes WORKS. What insanity to think that we can or should compete with 1.4
    billion communist slaves. Only the our slavemaster hyper-rich, the usual perps, benefit from that arrangement.

  • tyler55

    Across the board AUTOMATIC REFINANCE at 1% for 30 years for EVERY mortgage in the US.

    This will anchor people in their homes, and get a basic handle on the housing problem which is the root of this current depression.

    tyler

  • Don

    All those homes 4million+ will sell .Property always does and always has but it depends on one thing PRICE!.
    People and the foreclose owners want more than the “Value ” of the homes and the prices must come down. A lot of people are going to make big losses and already have of course but the banks have to take their share of losses to. From what I see the price of houses has to at least halve from whatever it is now and investors and first time home buyers will enter the market again , you would be a fool to now.Once the house stock is “consumed” the building industry can start up again and start creating jobs. This is the reason Japan (not through housing) has never really recovered from the 1990 recession , it does not believe in devaluing assets.

  • http://www.unlearning.org Patrick Mooney

    My fellow Americans (and other people interested in human freedom),

    Many of you read the horrific economic news and wonder helplessly “what is there to do about all this economic decline and corruption?” Well, let me give you two good ideas to get going on:

    1) Campaign to end the Federal Reserve, which is the chief architect of our nations economic destruction. Since the creation of the Fed back in 1913, our dollar ha sost 97% of its value. This is a generational rape of the greatest and most prosperous country the world has seen in some time, being conducted by international financial crooks who have no loyalty to the principles that established this country.

    2) Weaken the power and influence of the Federal Government. Read (don’t read about it…read the actual book before forming an opinion on it) Cracking the Code, the Fascintating Truth About Taxation in America, by Peter Hendrickson. In that book you will find everything you need to know about restoring this country to the great Consitutional Republic it once was, instead of this emerging Communist nightmare all around us.

    There are a lot of naysayers out there who will discredit the book, but I guarantee they haven’t read it…or they are just bald face liars.

    In closing, America is the way it is today because we are cowards. We have forgooten how to stand TOGETHER against corruption, and have let the corporations and crooked politicians sabotage our greatest dream for this one life on earth we all came to live (even if you believe in reincarnation, you are still living this one life now).

    I know America is going to wake up in a mighty fashion, and great days are ahead for us, but only if we can get the right info and learn to think for ourselves again. Television is full of so much poor quality programming that oour minds and souls have rotted and atrophied.

    Work out your freedom and liberty muscles a little bit…and start to know your neighbors better. I’ll be making some noise in a big way on the internet soon, so you can look for more empowering ideas from me in the near future.

    I believe in the American Dream…which is really human freedom for all peoples. I’ve been fighting for it hard since 2001, and I’m gonna be looking for a lot of partners to get the job done.

    Happy Equinox! The great change of the Aeons is upon us! Good times!

  • Chango

    Not everyone needs to own their own home. Sometimes it makes more sense to rent. However please realize that as more homeowners are forced out in foreclosure there will also be more rental demand (especially single family homes). This will drive rental prices up. It’s not easy to save money, true. Could you sock away, maybe $5000? Maybe over 12-24 months? Not easy but give up the morning coffee and donut ($1400/yr) and one dinner out a month and you’re halfway there (if you smoke you know what to do). Reinvent yourself. You do realize that if you can get a mortgage (this means credit is pretty good) most bread and butter homes will be cheaper to own over the next two years than rent. Example, find a home for $100k (there are evidently lots of them based on the comments I see here). FHA 3.5% down, negotiate the close costs, finance $96,500 ($518/mo principal and interest). Add Insurance $80/mo?, Tax $300/mo?, PMI $80/mo = $978/mo total. You then get mortgage interest tax credit of appx $130/mo back after you pay for a year. Effective monthly nut = $848/mo. This is for ostensibly a 3br, 1.1 ba home. In the US Northeast, this is a real possibility and the rents here are $800 and up for a small apartment. Some parts of the country you can buy a home even cheaper. This is one of the best markets to buy in! Please think like a contrarian, it will benefit you long term. We’re not selling security systems (fear-based) or gold coins to hoard. Just remember everyone is trying to sell you something, so watch the spin. Just saying try the math and if it works then go for it. If you can’t get the loan together, rent. If you can’t get the rent together, move in with family. Family lost the home? Maybe it IS time for revolution in the streets. Much wealth is created in down markets. No what the bloggers tell you. Peace

  • RAMIRO NUNEZ

    I AM FROM CHICAGO AND THERE ARE ALOT OF HOMES HERE UP FOR SALE. MY MOTHER HAS HER HOME UP FOR SALE CAUSE SHE IS TIRED OF THE COLD WINTERS HERE AND STILL NO LUCK. THE FORCLOSURE RATE CONTINUES TO RISE. BUT YET THE GOVERNMENT SEEMS TO KEEP FINDING MONEY AND USING IT FOR THERE ADVANTAGES. WE HAVE TO GET TOGETHER AND REVOLT AGAINST THEM BEFORE IT IS TO LATE. WE KEEP GIVING UP MORE OF OUR FREEDOMS. WHEN ARE WE GOING TO REALIZE WHAT IS GOING ON. COMING UP ELECTIONS DON’T VOTE FOR ANYONE. WE CAN PUT IN END TO THIS IF WE STAND IN WHAT WE BELIEVE IN. THE TIME IS NOW

  • http://TheAmericanDream Jerry

    I think this can safely debunk the myth of the 2010 “Summer of Recovery”. You just don’t have this happening to an economy that’s recovering. Record lows? Record housing appraisal drops? Record foreclosures? There is NO Summer of Recovery. It is total fiction.

  • Tim

    Don’t worry, real estate is being bought with cash by foreigners that use to deal in manufacturing and drugs like the Chinese and others. Pretty soon Amerika will be run by aliens without a shot being fired because of the shear stupidity of the dumb down citizens chasing crap like american Idol.

  • Natasha

    Has anyone heard about the loophole in MERS? This is where foreclosure have been challenged and the homeowner has actually won and able to keep their home. I think this is why the banks have increased their rates of foreclosure before this one gets out of the bag. Millions of homes could be saved if just the homeowner challenged the foreclosure based on the MERS loophole. There have been several cases on the docket won by homeowners that attorneys are using to challenge the bank’s ability to foreclose. Check out this video:

    http://4closurefraud.org/2010/09/13/breaking-video-fox-news-discusses-mers-could-62-million-homes-be-foreclosure-proof/

    Good luck! (maybe there is a silver lining in all of this?)

  • Osama Obama

    This could be good news for someone like me. I have never owned a home, and I have had to take early retirement with a small nest egg. Perhaps if home prices go a lot lower, I may be able to afford to purchase a home after all. Please don’t lecture me about hard times — believe me, I’ve already experienced hard times.

  • len

    One enormous coast to coast section 8 slum.

  • potkettle

    THX1138

  • http://hipriestess.com/blog hipriestess4u

    The fact is the us gov has just given our lakes and coastlines to the un. It won’t be long before the us is cut up into section, the news I heard is that the gov. declared imminent domain so that when the Chinese come to collect on the us debt, they can take whatever they want. Britain is pandering to the Chinese to buy in London, and getting rich on overswollen home value, will the us do the same?? When there is no running water, electricity or heating, people will realize the government of the us sold it’s soul to the devil.

  • http://www.mindofgod.info/ acudoc

    If you really want to understand what is going on and are interested in a lucid analysis that cuts to the quick, then take the time to read:

    http://www.plata.com.mx/mplata/articulos/articlesFilt.asp?fiidarticulo=161

    You won’t see this in the MSM, which promotes only the ideas of the court economists funded by the State.

  • Rick

    Greetings, Kathryn-So you want a “constructive idea”, so we can all rally & work together?Please consider this from someone in the “trades”.Unless a structure has a solid foundation, nearly every facet of that building will eventually be out of square, plumb, & level, & can’t be fixed except by dealing with the main, original problem-the foundation.The economic & financial system of this entire world has been controlled by those who care not about individuals, their rights, their lives, or even the countries they claim to love & support.Our representatives support them & their money, while claiming to be supporting the ones who voted them in.So-You have your answer.Too bad it is impossible to vote all reps. out at one time, & start fresh-with a solid foundation.

  • Sagitdragon76

    Im an Aussie watching with dismay the situation unfold not only in the US but the rest of the “Civilised World” as well. From 1998 until 2004 I worked as a sales executive selling materials handling equipment to all sorts of different companies. In 1998 probably 1/2 to 3/4s of the comps I dealt with were manufacturers, over the next 5 years that figure dropped to a tenth of my customers… replaced with importers flooding the market with cheap products. I used to tell people back then how I could not see how this was being allowed to happen, as the low to middle class people who worked for these companies were layed off in their droves. How can an economy function if no one has a job left to buy the cheap shit let alone pay their mortgage off??

    When the leader is morally weak and his discipline not strict, when his instructions and guidance are not enlightened, when there are no consistent rules. Neighboring rulers will take advantage of this. — Sun Tzu

    Every nation is perpetually at war. For a president, every move, every word, every action has consequences to the entire nation from that moment well into the future. The concepts behind successfully leading a nation are not new, but the naive, arrogant and power-hungry seem to create endless varieties of how to commit the same mistakes. The less we pay attention, the greater damage each mistake creates.

  • XJ

    People will be able to buy homes after properties go down another 50%. For the average fast food worker to buy a home, a 50K dollar home mortgage would be comfortable. Just remember, that 50K home used to be 400K in 2005. I think I’ll buy 4 in 2012 after the crash if our dollar is worth anything, otherwise, hyperinflation will set in and we are all screwed.

  • http://none SusieRealtor

    It’s a good article as far as it goes. I wonder how long it’s going to take for the financial gurus to get the underlying facts together….banks are forcng Short Sales and Foreclosures because they collect insurance of up to 100% of the ORIGINAL LOAN AMOUNT. When mortgages are in a pool and have been securitized, there is new insurance to each buyer down the line of those securities.
    AIG, or counterparts, is the main insurer. Many foreclosures are occuring without the actual loan owner’s written approval. Also, servicing agreements between the servicing company and the mortgage pool preclude any modifcations of the underlying loans. Simpy put, servicing companies in most cases can not legally modifiy a loan and the loan owner can not be traced.

  • http://www.siyavuna.org.za Jacques Snyman | Siyavuna Development Centre

    Empowering people by teaching them how to live of the land is key to overcoming poverty. Subsistence farming ensures healthy nutritious foodstuffs, without the penalties of GMO’s and poisonous herbicides and pesticides polluting the planet and causing disease in humans. Stepping outside the slavery trap set by the banksters is the key to survival in these difficult times.

  • jack

    You can fix the US with the stroke of a pen, and same applies to all banker owned communist countries. Exercise your right to buy out the FED and in an instant its fixed. Outlaw central banking and usury like most religions state and any kind of gov borrowing. Fixed right now.

  • sleuth

    It is important to mention hidden inventory. Banks hold off on either foreclosing or simply keeping property off the market to keep prices high.

    One should also mention that those who bought very high, need someone – someone feeling insecure about the future, to buy at a higher price.

    Lastly, a key distortion in the market, betraying the idea of free market, is the fact that the Fed will “loan” banks money at zero interest. This means that banks don’t need savings to fractional lend from, then can simply take that free money and gamble it without the need of a decent reserve. This means that savings accounts get no rate of return, lowering buying power over time. This also discourages banks from loaning to people when they can make more money gambling – on theory.

    I think something else should be mentioned in connection with the savings part. Many houses for sale are in bad shape, needing at least some work, if not serious work, to get them back in shape. This costs money, often money that would eat up savings and folks are going to be less willing to take that on. This also eliminates flippers who were driving a good part of the market as well.

  • Ponce

    The truth is worse than what they say because……..

    “They only tell you what they want you to know, or what they cannot longer hide”… Ponce

  • http://www.abacaonline.net Tony

    I live in California, and what I see out here is very scary, I am seeing more and more people moving in with each other, living in motor homes parked in yards etc, and of course homeless living here in riverside in the local riverbed, and i mean many. I beleive if your going to make a difference in your life, it means absolute cut backs combined with giving up what you really cant afford, even if it is your home. The party is over for many of us (Like myself) now is the time to depend only on yourself, take care of what you really know needs to happen, and in a very big way try and spend with your “local small merchants”, Network with your local businessman/women, and dont be afraid to tell your friends and neighbors what you are going through. most of all FOLLOW THROUGH WITH YOUR PLANS. If you have lost your job, and really need to work, maybe its time to take a job that does not suit you, it could be temporary, maybe not, but the truth is you are pushing forward, depending on yourself, doing postitive, that can only be good- Good luck to all of us:)

  • ted

    Some say that it is already turning around in Florida,
    You can buy a house on a lot for $15.000 in central Florida.

    I like to really be sure which way it will go.
    A lot of doomsday-ers are trying to sell their news letter telling us how to save our buts but that is biased.

    ted

    $1

  • Paul

    I am in Los Angeles. For three years I lived in rented a room, then had to move with friends, then slept behind bushes for three weeks during Christmas and ate from garbage cans, then was in a half-way house (no addictions) and now I am sharing a bedroom. All this time I was employed in phone sales. I used to live in a 43rd floor condo in the 90′s with valet service, working as a stockbroker. The last 12 months have opened my eyes to what really matters, and it isn’t Bling. ‘What you do for yourself dies with you, what you do for others lives forever’. Maybe, this is what this country needed to learn. We need to turn back to God and be more Self-less. .

  • http://www.yahoo.com d_artish

    President Jackson outlawed the “Fed” once. Our Congress ( take money from Fat businessmen or just too stupid) recreated the Fed. That was the beginning of today.

    1. The housing market will return to normal when there is an inflation ( not stagflation).

    2. The housing market will return to normal when Canada and Australia housing market crashes.

    3. The housing market will stabilized when people stop buying gold and buy commodity. Let those fat cats buy each other gold and let them eat gold for a living.

    4. The US Gov needs to stop bailing out corporation.

    5. The US Gov needs to stop wasting money on the military beyond required.

    6. Old people need to die away to stop putting pressure on the young people, unless they have their own money to live on.

    7. Stop checking my grammar and check its meaning.

    8. Blame yourself if you digged your own grave. It’s not god or other people fault, unless they acted illegally.

  • http://buyerbeaware.blogspot.com David Jeremiah

    “If the US goes down the entire world goes down.” Lyndon LaRouche, September 22nd, 2010: http://www.larouchepac.com/node/15847

  • Stephen

    Article leaves out the biggest reason for lack of “Recovery”. A crisis of confidence now exists. The public doesn’t trust mortgages any more. It’s general knowledge now that the boom was pure fraud and that there isn’t going to be another pumndump perpetrated on the world by the anarchic American RE industry.

    Millions have lost their homes, jobs and investment and it is just plain stupid to think they’re eager to jump back into the market. It’s over this time.

  • X

    Oh yeah. I purchased my home for 120,000 3 years ago. I could now sell it for about $72,000. So I am in limbo. I can’t sell it because I can’t make enough to pay off the note. Bummer. The debtor is truly a slave to the lender. Now I am doing everything humanly possible to get out of debt.

  • cy22

    [quote]#15 ….. How in the world is the U.S. housing market possibly going to find buyers for all of them?[/quote]

    An amnesty bill. Then the U.S. can be just like South America. That is, unless the populace here grows a set of balls.

  • bob

    There is a recovery for only the people that are skilled at what they do at the workplace. The housing market affects only those that cannot afford a house in the first place. People that have a steady income do not care about a house that will decline another 5% to 10%. Like myself, people have a family that needs a house just like a car that may depreciate in value. I personally don’t care if my house declines in value as it is not an investment; just a place to live. I hope that everyone just learns to live in these new economic times and DEAL with it. All the whining losers can just sit and complain while the people that generate income conform to the changes that we confront in this economy. Most of the whining losers out there should have never bought a house in the first place and do not understand the cycle of a bubble. Maybe this is a good time for all the negative people to go back to school and learn economics 101. I’m 36 and I earn $250,000 and I have seen the tech bubble so I’m not a stranger to what can happen. if it seems too good to the true, then it is.

  • Roland

    Here in SW Oregon the housing market is stuck. Yet I still see plenty of loaded logging trucks. Who is buying wood products? Something doesn’t add up.

  • Hank

    Well, Bobby, I’m a 34 year old junior college dropout and I make nearly 50K more than you annually, minus quarterly bonuses — no kids and zero liabilities or debt. I sock away 3/4 of my take home in various instruments and drive a fifteen year old Subaru when I drive at all. Do you know why? Because neither you or I will be making that kind of money in five years from now. I would bet you an entire years salary on that if I could. Like you said, if it seems too good to be true, it is. And it is.

  • Cat Callahan

    We will never get over these boom and bust cycles unless we get rid of the rats infesting congressional halls! Teach them a lesson they will not long forget! Get some balls and do something!

  • Ozark Bob

    I am retired on SS disability, and have a $900 a month pension (I had to retire at forty). I own my little home on 15 acres outright, I grow 90% of my vegetables and raise or hunt 100% of my meat and fish. I use the pension for utilities and a few “extras” and have money left over. Each month I use the SS to buy one ounce of gold, and with whatever is left I buy silver. I’ve been doing this for 14 years. When the whole thing implodes I won’t miss a lick (but I will miss the metals in the mail). Let ‘er rip.

  • Laura

    “Roland wrote: Here in SW Oregon the housing market is stuck. Yet I still see plenty of loaded logging trucks. Who is buying wood products? Something doesn’t add up.”

    ~~It adds up perfectly fine. There are these places called “other countries”, places like China, that are buying the wood.

  • Doooooglass

    Well Ozark. You’re on the right track. Just remember, within 5 years there will not be such a thing as social security. Plan accordingly.
    There has never been an empire as grand as the US and never been a fall that was as great as what is about to happen. The CONNEDsumers are disappearing. This will affect the entire planet.
    When Walmart can no longer pawn off the crap they currently sell, you’ll know the end is near.The worldwide sweatshops will shut down and total chaos will ensue.
    The end of this movie is not a happy one.

  • Jason

    ROLAND- It is all being sold to Canada or other foreign entities and AID for war torn countries. Also common it is exported to China in which they build cheap products to sell back to us… nice eh?

  • 900 gold?

    It seems most of these comments are inflated, perhaps by trolls. Ozark bob, where in the world are you buying an ounce of gold for less than 900 an ounce? You better get that “gold” you’ve been buying checked out, ’cause gold aint been that low for a while. Cheers.

  • Michael Carlson

    I work for an affordable housing non-profit in Wisconsin. We recently used federal, ‘Neighborhood Stabilization Funds’ to buy up a foreclosed home, with the intent to rehabilitate it and sell it to an income-qualified homebuyer. The effect of the ‘free’ transfer of title is fairly staggering in its implications: Because we were liberated from the ‘transaction’ costs of assuming ownership of the property, we’re able to sink tends of thousands of dollars into much-needed capital improvements, which we’re using to fully remediate the lead in the home; we’re reconstructing the shell of the home to modern standards of insulation and air-sealing; and we’ve reconstructed the roof of the home to take advantage of opportunities for passive solar heating. In all, we’re building a lovely, durable home that will stand the test of time.

    This project is fascinating from a policy standpoint: The free transfer of (foreclosed) title catalyzes the capital improvements. The free transfer of title reallocates housing resources to where they need to go — systematic improvements to the physical structure itself. The free transfer of (foreclosed) title has stimulated two new loans: 1) A new construction loan, and 2) A new 30-year mortgage who’s volume is commensurate with a actual family’s ability to pay as it only needs to pay off the construction loan. This free transfer of (foreclosed) title further stimulates the building trades, as worthless, financial ‘value’ bound to the home disappears and makes room for new construction money to flow into the home.

    Certainly, there must be some large-scale way to draft a policy for the banks, that absolves them of this worthless mortgage debt, in exchange for handing off these foreclosed properties to responsible stewards such as our homeownership program, who can thereby restimulate construction, repair and upgrade the existing housing stock, and sell those homes at prices that reflect people’s actual incomes.

  • james

    if all those homes are empty, the big question is where did all those people go… and the answer is… they buged out…there’s no justification for raising a family here and if you do it… in my opinion your negligent…lets just review current events, civil rights-gone, safety from violence-gone, freedom from fees and fines and business scams and other rip offs-gone, privacy-gone, any f#$%^ing sense of normalcy-yep, gone. oh and jobs, even if u got one It’s working poor kind of thing so-gone, your house-gone,… so if you know of a good country to go to ( that will take us ) post it here

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