U.S. Housing Crash Deepens in 2008 After Record Drop

U.S. Housing Crash Deepens in 2008 After Record Drop

www.bloomberg.com

Dec. 14 (Bloomberg) -- For U.S. homeowners, builders, bankers and realtors, the crash of 2007 will only get worse in 2008.

Everyone from mortgage-finance company Fannie Mae to Lehman Brothers Holdings Inc. expects declines next year. Existing home sales will drop 12 percent and existing home prices will fall 4.5 percent, Washington-based Fannie Mae says. Lehman analysts estimate almost 1 million mortgage loans will default in 2008, up from about 300,000 this year.

``We're only halfway through the housing shock,'' said Ethan Harris, chief U.S. economist at New York-based Lehman, the fourth- biggest U.S. securities firm by market value. ``It's just a matter of time before the weakness spreads to the rest of the economy.''

(visit the link for the full news article)

I was unaware the housing market was experiencing a full blown crash in the States. This wasn't covered in Europe.

But, I'm glad I find this news because this is starting to spread across the pond. House prices in the UK are declining rapidly, and it's just spreaded to London.

www.bloomberg.com
(visit the link for the full news article)

Yeah, bad news abounds... I have to think or believe that this is being orchestrated somehow. I have a great deal of difficulty in believing that the bankers (elite) would allow themselves to be in precarious situation unless they could forsee some inherent benefit as the net result. I just wonder what that could be???

I would guess that it has to do with the 'World' Central Bank. A One World Bank is the goal. I found it interesting that the US Fed put aside public disclosure laws in order to rush in with other Central Banks to 'Fight the Global Crisis'. One World everything will then follow the Money.

reply to post by infinite


Yeah, it's been around for some months now, appearing in short articles now and again. From the different people I've met during my brief stay in London I've learned that many people are giving up the hope of buying their own home in and around London. It's simply too expensive...

The same thing is happening in Denmark, especially around the capital where there had been a boom in pricing until the beginning/middle of 2007. Prices got obscene and a lot of people who thought that they were going to be making a profit on it got on the wagon too late.
Prices of both houses and apartments in Copenhagen are flattening out and about to descent.

When the American economy crashes we'll have to salvage what we can while we can... and in spite of all this the right wing government in Denmark is still refusing to let go of the low taxes.

[edit on 14/12/07 by flice]

Originally posted by kozmo
I have to think or believe that this is being orchestrated somehow.
I have a great deal of difficulty in believing that the bankers (elite) would allow themselves to be in precarious situation unless they could forsee some inherent benefit as the net result.
I just wonder what that could be???

At one time, i'm thinking the Fed and orchestrated by the Greenspan scheme...thought that loose credit and easy financing of no sweat
Mortgages was directed at the several million illegals setting up shop
here in the States,
along with the house (possibly shared by 2 or more families)
there was all the 'stuff' that was necessary for living in that house -
Viola' the economy kept Growing! as beds/TVs/appliances and gadgets were needed to fill the house with all the accutrements of the American-Dream... the expanding economy and expanding credit society was continued under the Greenspan Scheme


but- alas-- it all backfired in a waythe central bankers had not forseen...
Even Greed... must sometimes take a holiday !
and during that holiday, the lemming like consumer-investors had enough time to see the cliff they were charging headlong into...


no. this result isn't something designed,
this present mess was finally discerned by the public at large, but there is no search for the instigators (Yet) the Fed will point fingers at the bond rating houses...but exclude the investment banks that made the toxic packages of (overpriced/ under risked) junk bond mortgage paper
pawned off as 'Investment Grade" AAA



[edit on 14-12-2007 by St Udio]