Jim has a great write up on the same charts.

SD Foreclosures Next 12 Months

As usual, my stand is “you can run, but you can’t hide”…..

Let them hit the market, I’ll start shopping soon

Jim has a great write up on the same charts.

SD Foreclosures Next 12 Months

As usual, my stand is “you can run, but you can’t hide”…..

Let them hit the market, I’ll start shopping soon

The problem (at least if you are a buyer) is that the government has all kinds of tricks they can use to prop up the market. The government can encourage more zero-down loans, the Fed can buy $1 trillion in MBS at the drop of a hat, the Treasury can encourage banks to continue to hold on to all that inventory, the government can continue to suspend mark-to-market, and on and on and on.

The housing market doesn’t come close to resembling anything like a free market with all the government intervention. Hosing would probably be 50% lower if the government hadn’t intervened. If every buyer had to put down 20%, housing would probably be 70% lower.

I think the government has found a level for housing that they are comfortable with. They’ve bailed out all their cronies at the top and now we are likely to see a government-supported stagnant market that lasts for the next 10 years or so.

The problem (at least if you are a buyer) is that the government has all kinds of tricks they can use to prop up the market. The government can encourage more zero-down loans, the Fed can buy $1 trillion in MBS at the drop of a hat, the Treasury can encourage banks to continue to hold on to all that inventory, the government can continue to suspend mark-to-market, and on and on and on.

The housing market doesn’t come close to resembling anything like a free market with all the government intervention. Hosing would probably be 50% lower if the government hadn’t intervened. If every buyer had to put down 20%, housing would probably be 70% lower.

I think the government has found a level for housing that they are comfortable with. They’ve bailed out all their cronies at the top and now we are likely to see a government-supported stagnant market that lasts for the next 10 years or so.

The problem (at least if you are a buyer) is that the government has all kinds of tricks they can use to prop up the market. The government can encourage more zero-down loans, the Fed can buy $1 trillion in MBS at the drop of a hat, the Treasury can encourage banks to continue to hold on to all that inventory, the government can continue to suspend mark-to-market, and on and on and on.

The housing market doesn’t come close to resembling anything like a free market with all the government intervention. Hosing would probably be 50% lower if the government hadn’t intervened. If every buyer had to put down 20%, housing would probably be 70% lower.

I think the government has found a level for housing that they are comfortable with. They’ve bailed out all their cronies at the top and now we are likely to see a government-supported stagnant market that lasts for the next 10 years or so.

While I dont agree with BGIG’s feelings re: the level of the drops w/o intervention the rest seems to be pretty spot on.

While I dont agree with BGIG’s feelings re: the level of the drops w/o intervention the rest seems to be pretty spot on.