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Home Prices Continue Crash

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October 28, 2008 – Comments (6)

case shiller august 2008

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case shiller august 2008 -2

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Here is the whole release.

Yet John McCain thinks we can/should put a "floor" under housing prices by buying up mortgages and forgiving some of the debt. Sheila "Che" Bair thinks something similar, and has been letting deadbeats off at IndyMac. I heard the story of one poor "unfortunate" this morning who admitted to being habitually behind on the mortgage since, oh, 1997. And these are the folks Bair is "saving" from recent, predatory lending problems?

Not only is this morally wrong, it's doomed to fail. Let the prices fall on their own. They're going to correct whether or not McCain and Bair like it, so the right people (those who won't pay their mortgages) ought to pay the price.

Obama's response is slightly (only) less idiotic. He wants to grant "homeowners" [because he can't call them what they are: homedebtors] yet another tax break, as if there aren't already way too many decision-skewing incentives already in place to help push people into irresponsible financial positions.

McCain... Well, no use talking to you or Sarah. You'll say whatever it takes to try and win a state or two now. B.O.? Forget the loopy tax incentives. Let housing correct itself without further dopey unintended consequences. Let the responsible savers out there come in and scoop up the homes when they're reasonably priced.

6 Comments – Post Your Own

#1) On October 28, 2008 at 11:13 AM, kdakota630 (29.86) wrote:

I completely agree with you, but what are the chances of a candidate getting elected who didn't pander to the public this way?  They'd be demonized as cruel and heartless.

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#2) On October 28, 2008 at 11:16 AM, TDRH (99.76) wrote:

Will hit bottom when the Median Home Price is in line with the historical relationship with Median Income.  

 

When this occurs the housing market will have reached bottom, but it could overshoot as well depending on the state of the credit markets.  Report this comment
#3) On October 28, 2008 at 3:53 PM, TMFLomax (28.08) wrote:

Oh no.. back from my vacation and I'm starting to get that angry/indignant feeling bubbling up again... haha.

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#4) On October 28, 2008 at 5:59 PM, giantSwan (< 20) wrote:

I agree TDRH..and I believe we will overshoot in some regions.

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#5) On October 28, 2008 at 6:22 PM, Tastylunch (29.52) wrote:

TDRH

If it can overhoot one way (upside) to can overshoot the other (downside).

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#6) On October 28, 2008 at 10:20 PM, awallejr (82.76) wrote:

Forget a housing bottom just yet.  These foreclosures take time to play out (estimating 5 years starting from 2007).  2010 should be the bottom of the U shape, tho it is posbile late 2009 due to all these fed moves.  Many banks are taking 50cents on the dollar in certain areas.

Also don't expect all areas to react the same.  Real estate is all about location location location.

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