House Prices....7 Years To The Bottom ?
- Thread starter libertad
- Start date
So true....when they start the "monetary carpet bombing" there will be very little likelihood that they have established a base value for housing.
The housing debacle simply has to run its course in the market place....a moratorium of 3 years on housing permits would be a beginning.
Putting that aside, I have a gut feeling the government is going to basically "rig" the stock market after they have nationlized the banks. A bank's balance sheet cannot be trusted as they are all technically bankrupt and there is no way that they can establish true values to their portfolios.
The European financial system is rotten to the core and that will keep the US dollar as the currency of last resort (for what that is worth
)My immediate concern is who is going to finance the US debt in the future. It is not likely to be China.
A big part of "the housing problem" is that house prices are much too high vs. incomes to afford them. Therefore, either housing prices need to come down to affordability vs. incomes, or incomes need to rise sharply to be able to afford current home prices.
Messy and difficult either way.
Not likely incomes are going to get a dramatic rise unless boosted by high inflation.
Yet, Gummint wants to stop housing prices from falling for all the obvious reasons.
IMV, the most likely resolution is that assets.. housing and stock market... fall until there is perceived value.
I suppose I could have phrased that better than I did....the "moratorium" of housing permits would allow the excesses of the market to be gradually absorbed.
If builders feel there is a market in which they can build ;more power to them....there will always be the exceptions.
The closest thing to me being "left wing" is that I am left handed
No, I am not for a moratorium.
As for your other comment...get a grip
