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alstry (35.36)

Yesterday's WARNINGS.....Today's REALITIES

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May 02, 2009 – Comments (6)

SOON YOU TOO WILL SEE......A DEPRESSION!!!!!!!  Now the only question is how bad????

(MarketWatch) -- In California's Inland Empire, there are neighborhoods filled with vacant homes -- some of them abandoned foreclosure houses and others vacant properties waiting to be rented.

"The question is: Where have all the people gone?" said Chuck Whitehead, a real estate agent in that southeastern area of the state.

From what he can tell, many people are moving back with family -- often their parents -- while they get their finances in order, from the 40-year-old recovering from a foreclosure to the 30-year-old saving up the down payment to help him buy his first home.

But it's not only "boomerang" kids returning to the nest and creating bigger households. On the other end of the age spectrum, some older Americans lost a good deal of their nest eggs due to the fall of the stock market -- funds intended to pay for their everyday expenses or assisted living. Some of them are moving in with family too.

What can result is a household with members who span three generations.

http://www.marketwatch.com/news/story/In-hard-times-generations-triple/story.aspx?guid=%7B8078821E%2DE5F6%2D45CA%2DA756%2D4242C16CDC85%7D

Alstry remembers when he was warning about this liklihood last year......no doubt about it............yesterday's warnings are becoming today's realities.

This will cause greater home vacancies....increasing delinquint property taxes....more neighborhood blight......drving down the values of homes around them......leading to more foreclosures.......driving down values even more..........round and round we go......until we institute policies to end the Toxic Borrower Sydrome and the FU virus......otherwise we are on the fast track to Zombie Nation.....

There has never been an Econonomic Weapon of Mass Destruction like the Zombulator.......soon we may all know what it is like to be Zombulated.

6 Comments – Post Your Own

#1) On May 02, 2009 at 9:59 AM, alstry (35.36) wrote:

WILL THIS BECOME A TREND DUE TO TOO MANY HOMES???

An Amazing Sight with so many Homeless......

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#2) On May 02, 2009 at 11:54 AM, unvrsldeflation (84.92) wrote:

Yes, amazing to realize that the misallocation of assets will not be repaired. They, the owners of capital, will destroy or let lie to rot, rather than accept a deflationary paradigm. It is no surprise really considering they got into their positions under an inflationary model and can little afford to calculate returns now. One wonders when it is along the curve that the owners of capital will realize that any return is better than no return and that the best policy is to put their assets to work, even if they gather what might be considered negative equity under the old paradigm?

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#3) On May 02, 2009 at 1:50 PM, alstry (35.36) wrote:

BUFFETT DEAD WRONG!!!!!!!!!!!!!!!!!!

Roughly 1.3 million households are created each year in the U.S., while about two million homes were being built a year during the recent boom, Buffett added.

 At that rate, "you will run into trouble," he said. Now housing starts are running at roughly 500,000 units a year, which means the excess inventory is being absorbed at a rate of about 700,000 to 800,000 units a year, Buffett said.

"We're going to eat up inventory. That may take a couple of years. When it gets done you will have stabilization in housing prices," Buffett predicted. "Then you will have demand for more housing starts."

http://www.marketwatch.com/news/story/Buffett-sees-some-housing-market/story.aspx?guid=%7B87B652DA%2D03A2%2D4A86%2DB74A%2DC281E7BE3A46%7D

What Mr. Buffett fails to account is with millions of Americans losing their jobs each month.....hundreds of thousands of families are moving in with each other to save expenses which the Institute of Alstrynomics calls household contraction causing foreclosures and excess inventory.....

currently this appears to be occuring at a faster rate than household formation.

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#4) On May 02, 2009 at 2:18 PM, Entrepreneur58 (36.98) wrote:

When houses become affordable, they will fill back up.  Right now, the banks are not even attempting to sell many of their foreclosures, so they are not going down enough in price to clear the inventory.  This is my leading economic indicator.  When I start to see families moving into many of the empty homes in my neighborhood, I'll know we're getting close to the end of the crisis.  So far, no end in sight.

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#5) On May 02, 2009 at 2:27 PM, alstry (35.36) wrote:

Over the next six months....we could see millions of Americans lose their jobs due to businesses and government sponsored entities shutting down due to evaporating revenues......

TALLAHASSEE, Fla. (MAY 1, 2009) – On April 30, an appropriations conference committee for the House and Senate agreed to eliminate all funding for Florida’s State Aid to Public Libraries program. This devastating action will result in some Florida library branches closing and will seriously cripple libraries’ ability to serve Floridians. It will be especially damaging to libraries in Florida’s rural communities, as these libraries rely heavily on provisions in the program that help communities with lower tax bases.

The Florida Library Association (FLA) is calling on Governor Charlie Crist to use his influence and ask legislative leaders to find a way to fund this critical program, which has helped support public library service to Floridians since 1962.

WHAT WILL HAPPEN TO HOUSING IF MILLIONS OF ADDITTIONAL AMERICANS LOSE THEIR JOBS????

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#6) On May 02, 2009 at 5:31 PM, mliu01 (< 20) wrote:

The house can't be this affordable anymore. To tell you the truth. There are many people in this world are as smart as dilligent. But they can never afford hous like this. We, as americans are losing all the advantages little by little. The good ole time might not come back anytime soon.

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