Lower Home Prices Can Fix What Government Can’t: Caroline Baum

[jpinpb]

[quote=EconProf]We are in the morning after/hangover stage, which must last a while longer.[/quote]

How to avoid a hangover? Keep drinking.

I’d say they are doing everything possible to not feel the pain and spending (drinking).

[Hobie]

[quote=EconProf]The government is in a quandry: they need construction to build more residential and commercial buildings in order for the economy to revive. Yet the solution to the real estate glut of all categories is to NOT build for several years, allowing demand to sop up the accumulated surplus.
We are in the morning after/hangover stage, which must last a while longer.[/quote]

Agreed. A certain portion of our economy is tied to the building industry but we could achieve growth with a thriving manufacturing base. This would require a more practical look at environmental and energy policies.

[Hobie]

[quote=EconProf]The government is in a quandry: they need construction to build more residential and commercial buildings in order for the economy to revive. Yet the solution to the real estate glut of all categories is to NOT build for several years, allowing demand to sop up the accumulated surplus.
We are in the morning after/hangover stage, which must last a while longer.[/quote]

Agreed. A certain portion of our economy is tied to the building industry but we could achieve growth with a thriving manufacturing base. This would require a more practical look at environmental and energy policies.

[Hobie]

[quote=EconProf]The government is in a quandry: they need construction to build more residential and commercial buildings in order for the economy to revive. Yet the solution to the real estate glut of all categories is to NOT build for several years, allowing demand to sop up the accumulated surplus.
We are in the morning after/hangover stage, which must last a while longer.[/quote]

Agreed. A certain portion of our economy is tied to the building industry but we could achieve growth with a thriving manufacturing base. This would require a more practical look at environmental and energy policies.

[Hobie]

[quote=EconProf]The government is in a quandry: they need construction to build more residential and commercial buildings in order for the economy to revive. Yet the solution to the real estate glut of all categories is to NOT build for several years, allowing demand to sop up the accumulated surplus.
We are in the morning after/hangover stage, which must last a while longer.[/quote]

Agreed. A certain portion of our economy is tied to the building industry but we could achieve growth with a thriving manufacturing base. This would require a more practical look at environmental and energy policies.

[Hobie]

[quote=EconProf]The government is in a quandry: they need construction to build more residential and commercial buildings in order for the economy to revive. Yet the solution to the real estate glut of all categories is to NOT build for several years, allowing demand to sop up the accumulated surplus.
We are in the morning after/hangover stage, which must last a while longer.[/quote]

Agreed. A certain portion of our economy is tied to the building industry but we could achieve growth with a thriving manufacturing base. This would require a more practical look at environmental and energy policies.

[SD Realtor]

Sorry Arraya –

You can cut and paste all the articles and quotes you want….

Quoted from the 1/27/10 State of the Union Address from our president:

That’s why we’re nearly doubling the child care tax credit, and making it easier to save for retirement by giving every worker access to a retirement account and expanding the tax credit for those who start a nest egg. That’s why we’re working to lift the value of a family’s single largest investment – their home. The steps we took last year to shore up the housing market have allowed millions of Americans to take out new loans and save an average of $1,500 on mortgage payments. This year, we will step up re-financing so that homeowners can move into more affordable mortgages. And it is precisely to relieve the burden on middle-class families that we still need health insurance reform.

*****

Doesn’t sound to me as if the administration is on the same page.

[SD Realtor]

Sorry Arraya –

You can cut and paste all the articles and quotes you want….

Quoted from the 1/27/10 State of the Union Address from our president:

That’s why we’re nearly doubling the child care tax credit, and making it easier to save for retirement by giving every worker access to a retirement account and expanding the tax credit for those who start a nest egg. That’s why we’re working to lift the value of a family’s single largest investment – their home. The steps we took last year to shore up the housing market have allowed millions of Americans to take out new loans and save an average of $1,500 on mortgage payments. This year, we will step up re-financing so that homeowners can move into more affordable mortgages. And it is precisely to relieve the burden on middle-class families that we still need health insurance reform.

*****

Doesn’t sound to me as if the administration is on the same page.

[SD Realtor]

Sorry Arraya –

You can cut and paste all the articles and quotes you want….

Quoted from the 1/27/10 State of the Union Address from our president:

That’s why we’re nearly doubling the child care tax credit, and making it easier to save for retirement by giving every worker access to a retirement account and expanding the tax credit for those who start a nest egg. That’s why we’re working to lift the value of a family’s single largest investment – their home. The steps we took last year to shore up the housing market have allowed millions of Americans to take out new loans and save an average of $1,500 on mortgage payments. This year, we will step up re-financing so that homeowners can move into more affordable mortgages. And it is precisely to relieve the burden on middle-class families that we still need health insurance reform.

*****

Doesn’t sound to me as if the administration is on the same page.

[SD Realtor]

Sorry Arraya –

You can cut and paste all the articles and quotes you want….

Quoted from the 1/27/10 State of the Union Address from our president:

That’s why we’re nearly doubling the child care tax credit, and making it easier to save for retirement by giving every worker access to a retirement account and expanding the tax credit for those who start a nest egg. That’s why we’re working to lift the value of a family’s single largest investment – their home. The steps we took last year to shore up the housing market have allowed millions of Americans to take out new loans and save an average of $1,500 on mortgage payments. This year, we will step up re-financing so that homeowners can move into more affordable mortgages. And it is precisely to relieve the burden on middle-class families that we still need health insurance reform.

*****

Doesn’t sound to me as if the administration is on the same page.

[SD Realtor]

Sorry Arraya –

You can cut and paste all the articles and quotes you want….

Quoted from the 1/27/10 State of the Union Address from our president:

That’s why we’re nearly doubling the child care tax credit, and making it easier to save for retirement by giving every worker access to a retirement account and expanding the tax credit for those who start a nest egg. That’s why we’re working to lift the value of a family’s single largest investment – their home. The steps we took last year to shore up the housing market have allowed millions of Americans to take out new loans and save an average of $1,500 on mortgage payments. This year, we will step up re-financing so that homeowners can move into more affordable mortgages. And it is precisely to relieve the burden on middle-class families that we still need health insurance reform.

*****

Doesn’t sound to me as if the administration is on the same page.

[Arraya]

[img_assist|nid=13070|title=.|desc=|link=node|align=left|width=533|height=400]

yes, SDR, I am well aware of the *intentions* in keeping RE elevated. however, intentions are one thing and real world is another.

They still need to find job growth to keep the party going. Without that, things will go down, on way or another. Either that or some fed wizardry inflation everybody seems to be expecting to prop prices up. Though, I don’t see any reason for that in the near term and really, without evidence of freshly printed $$ washing over the land, it’s just a faith based assertion. All evidence points to $$ becoming more scarce amongst the populace.

We depleted a good bit of pent up demand since last spring and with negative job growth there is a lot less left. how much is the question as well as the supply releasing issue.

I can’t imagine them going through too many of the 10 million delinquent FBs, too fast. Which means supply will be slow to market. Which matches up with slowing demand from depletion.

This year probably will be a lower sales volume year as compared to last as demand and supply is depleted. Though, I believe low velocity comes with its own set of deflationary problems.

[Arraya]

[img_assist|nid=13070|title=.|desc=|link=node|align=left|width=533|height=400]

yes, SDR, I am well aware of the *intentions* in keeping RE elevated. however, intentions are one thing and real world is another.

They still need to find job growth to keep the party going. Without that, things will go down, on way or another. Either that or some fed wizardry inflation everybody seems to be expecting to prop prices up. Though, I don’t see any reason for that in the near term and really, without evidence of freshly printed $$ washing over the land, it’s just a faith based assertion. All evidence points to $$ becoming more scarce amongst the populace.

We depleted a good bit of pent up demand since last spring and with negative job growth there is a lot less left. how much is the question as well as the supply releasing issue.

I can’t imagine them going through too many of the 10 million delinquent FBs, too fast. Which means supply will be slow to market. Which matches up with slowing demand from depletion.

This year probably will be a lower sales volume year as compared to last as demand and supply is depleted. Though, I believe low velocity comes with its own set of deflationary problems.

[Arraya]

[img_assist|nid=13070|title=.|desc=|link=node|align=left|width=533|height=400]

yes, SDR, I am well aware of the *intentions* in keeping RE elevated. however, intentions are one thing and real world is another.

They still need to find job growth to keep the party going. Without that, things will go down, on way or another. Either that or some fed wizardry inflation everybody seems to be expecting to prop prices up. Though, I don’t see any reason for that in the near term and really, without evidence of freshly printed $$ washing over the land, it’s just a faith based assertion. All evidence points to $$ becoming more scarce amongst the populace.

We depleted a good bit of pent up demand since last spring and with negative job growth there is a lot less left. how much is the question as well as the supply releasing issue.

I can’t imagine them going through too many of the 10 million delinquent FBs, too fast. Which means supply will be slow to market. Which matches up with slowing demand from depletion.

This year probably will be a lower sales volume year as compared to last as demand and supply is depleted. Though, I believe low velocity comes with its own set of deflationary problems.

[Arraya]

[img_assist|nid=13070|title=.|desc=|link=node|align=left|width=533|height=400]

yes, SDR, I am well aware of the *intentions* in keeping RE elevated. however, intentions are one thing and real world is another.

They still need to find job growth to keep the party going. Without that, things will go down, on way or another. Either that or some fed wizardry inflation everybody seems to be expecting to prop prices up. Though, I don’t see any reason for that in the near term and really, without evidence of freshly printed $$ washing over the land, it’s just a faith based assertion. All evidence points to $$ becoming more scarce amongst the populace.

We depleted a good bit of pent up demand since last spring and with negative job growth there is a lot less left. how much is the question as well as the supply releasing issue.

I can’t imagine them going through too many of the 10 million delinquent FBs, too fast. Which means supply will be slow to market. Which matches up with slowing demand from depletion.

This year probably will be a lower sales volume year as compared to last as demand and supply is depleted. Though, I believe low velocity comes with its own set of deflationary problems.

[Author]

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