The Cracks Are Showing In the Housing Market Once Again
If you observe current events, it can
seem like there are economic emergencies everywhere. Every segment of
the economy appears to be under immense pressure. What with the massive
student loan debt, federal debt, municipal debt, derivatives, and a
stock market that seems to magically rise above it all, flying in the
face of all logic and common sense, it's surprising that the whole thing
hasn't come tumbling down yet. And yet, the next collapse may come from
somewhere that is very familiar to us. It appears that many of us
haven't learned anything from the last bubble.
It's possible that
the next wave of economic malaise may come from the housing market once
again. Economists were expecting another increase in home building and
loans. Instead, housing starts dropped 9.3 percent last month, and building permits fell 4.3 percent across the nation.
The Wall Street Journal is telling everyone that there's nothing to see
here (which is tantamount to telling a crowded building that the smoke
isn't from fire). They're claiming that these recent declines are in
fact, due to an unusually rainy
season in the Southern United States. Apparently there has been a 30
percent drop in housing starts in the South. In the same paragraph the
article mentions that there has been an increase of 28 percent in the
Midwest and 14 percent in the Northeast. Surely those numbers alone
would offset the bad weather in the South. The article also fails the
mention the Western United States, where I can assure you that rain has
not been a factor for quite some time.
Mortgage rates also fail to explain the situation, as they've been dropping significantly the past 6 months. Perhaps a better explanation would be the 5 percent decrease
in home loan applications that took place in a May and June, which was
also coupled with a slight decrease in the average loan size. Doesn't
that make real sense? That perhaps not as many people can afford to buy a
home, and maybe construction companies and investors are beginning to
see the writing on the wall? 2+2=4, and stuff like that?
is the housing market, and the economy at large, has never fully
recovered. That hasn't stopped the price of housing from returning to
pre 2008 levels in some areas, and the skyrocketing price of the stock
market. The true nature of these events is obvious, when it can be seen
that these prices have gone up significantly since Bernankes QE4 dumped billions
of dollars into the economy every month. It would make sense that the
markets are finally beginning to crack up, since Yellen has expressed
her desire to stop quantitative easing entirely this year. Again, 2 and 2 equals what now?
let yourself get caught up in these schemes. The Bernankes, Yellens,
Buffets, and Soros' of the world expect you to buy buy buy just as
they're getting around to selling.
They rely on hype and insider secrets to fleece regular folks who enter
these markets. They're trying to prop up the corpse of this economy
like it's “Weekend at Bernie’s” and they expect us to buy it, literally
and figuratively. Well, all I can say is, don't.
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