Why Housing will keep collapsing

[Covertibility]

Quote from Lights:

i wonder what all this cynicism and negativity *really* means to the markets.

It means the housing market will probably do what the forecasters are predicting, weak prices through most the year with a pick up late this year and into 2008. They forecasted low single digits last year and we got 1.1% increase on existing home prices while new homes sagged.

The US was suppose to go bankrupt back in the 90's, go figure.

 

[otcstockfund]

Quote from ElCubano:

many people cried wolf when P/E's where in the thousands and when stock prices soared even though many internet companies didn't even have a good model in place...what happened?? NOBODY listened and/or CARED..why?? cuz prices kept on climbing and thats all that matters til the shit hits the fan...then and only then DO PEOPLE start to listen....thats why they call it dumb money; smart money has long been out when the dumb money finds its way in....

yup, all my friends that thought they were geniuses by buying condos and telling me i was crazy for calling top in my area back in sept-oct 05 are now hating life cause they can't get rid of them

 

[dandxg]

Quote from ByLoSellHi:

It won't be limited to housing.

http://www.elitetrader.com/vb/showthread.php?threadid=89201

It will affect all of consumer spending, and not just in the U.S.

It is just beginning.

I couldn't agree with you more. It will be a big domino effect. The majority of increased net worth came from paper profits in housing, unless you cashed out. Then ppl. took that money and bought worthless crap made in China.

 

[yonglee]

Quote from Trendytrader:

It appears we are not the only country facing a housing meltdown.

http://times.hankooki.com/lpage/biz/200703/kt2007031118091911890.htm

Steps Urged to Prevent Japan-Style Recession


By Lee Hyo-sik
Staff Reporter
The Korea Institute of Finance (KIF) has called upon the government to come out with preemptive measures to prevent the world’s 11th largest economy from plunging into a Japanese-style recession of the 90’s, amid the unstable real estate market and weakening growth potential.

...

As a Korean, I feel a big problem regarding the housing market. I remember I couldn't catch up the growth of economy with my salary. Back in from 1980 to 1990, I got raised 10% every year, but inflation was way more than that.
Right now, the market is a little ease compared to that period, but there's still a lot of room to catch up.
Hopefully, get economy growth slow down this year.