The Economy Is In Deep, Deep Trouble

Booyah. It's morning in America. The jobless numbers are stabilizing, the stock market is sizzling, quarterly earnings came in better than expected, traders have turned bullish, housing is showing signs of life, and clunker-swaps have given Detroit a well-needed boost of adrenalin. Even Cassandra economists --like Paul Krugman and Nouriel Roubini--have been uncharacteristically optimistic. Is is true; did we avoid a Second Great Depression? Is the worst really behind us?

"The Fed's policy-setting Open Market Committee will today keep the target rate at zero to 0.25 percent and retain plans to buy as much as $1.45 trillion of housing debt by year-end to help secure a recovery, analysts said. The FOMC's statement is expected at about 2:15 p.m. in Washington."

Hmmmmmm. So all the "green shoots" happy talk is pure gibberish, right? There is no recovery. Bernanke plans to continue flooding the financial system with cheap liquidity. It's all a fraud. Things aren't better; they're worse.

Look at the facts.

There were 1.9 million foreclosures in 2009 in the first six months, and there will be another 1.5 before the end of the year. Is that better? According to Bloomberg: "A glut of unsold homes is also pushing down prices. The 3.8 million homes for sale in June would take 9.4 months to sell at the current pace of transactions, according to the National Association of Realtors. The inventory turnover rate averaged 4.5 months in the six years from 2000 to 2005.....More than 18.7 million homes, including foreclosures, residences for sale and vacation homes, stood vacant in the U.S. during the second quarter. That compared with 18.6 million a year earlier, the U.S. Census Bureau said July 24

SOURCE

No recovery in sight. They can throw all the money they want into the pit of no return, it wont help but line the wallets of those at the top of the pyramid.

reply to post by warrenb

More than 18.7 million homes, including foreclosures, residences for sale and vacation homes, stood vacant in the U.S. during the second quarter. That compared with 18.6 million a year earlier, the U.S. Census Bureau said July 24

Am I missing something here? It doesn't seem like a big difference. .1 percent? Please elaborate, thanks. Good post by the way, Just need a little more information.

No recovery in sight. They can throw all the money they want into the pit of no return, it wont help but line the wallets of those at the top of the pyramid.

Exactly......



But what ya gonna do about it........?



People are way way too scared to do anything, apathy has taken over, we may as well willingly go to the gas chamber right now......



MR

The Fed is now having to purchase defaulted debt because no other country will. This is serious. In addition, it has been said that the housing default numbers are not actual, because banks are not putting all of the foreclosed inventory on the market, to try to preserve some of the prices. If they dumped all of their foreclosures on the market at once, it would further depress prices while driving up inventory.

There are many many indictors the economy is recovering. IN order to say they are recovering, they need to be in the green for at least three months.

What that doesn't mean is that all is recovering. It happens in steps, not all at once. It is not like a mercury thermometer, it is not that simple.

it is like six domino sets going off at once, at varying stages.

Housing and jobs are going to be last. People can't affford mortgages without jobs.

When the jobs get better, then you will see housing get better. But all the other factors gotta line up before jobs get better.

Here in NJ foreclosures are up 7%. Also here the courts are so backed up with paperwork they cant even catch up on foreclosure filings from a few months back!! That is how bad it is!!! I assume this is the case in alot of other states. So dont expect housing to recover anytime soon.

Originally posted by ldyserenity
reply to post by warrenb

 

Good post by the way, Just need a little more information.

The .1 percent would be worse but they are printing massive amounts
of money to inject inflation directly into the economy.

It takes time for this to work its way into the system, but something
else is coming much sooner and that is massive bank failures.

FDIC hires 600 new workers and calls up the retirees

31 MAR 2009 - 347 banks near faulire

The red means they are technically already failed, the orange means
they are 1% away from it, some in the yellow failed for other reasons.

Top FDIC official says banking failures to go up 10 times as much

Well we have had several dozen fail, so I guess its going into the hundreds.

With 2,700 banks rated D+ or lower I can see why that might happen.

2,700 banks are rated D+ or lower

Bank of America who got bail out money is in such bad shape still
that it has now chosen to close 600 branches.

BofA to close 600 branches

The schultz letter accurately predicted the Oct. 2008 crash and now
they are saying US embassies overseas are being told to store
1 years worth of non-US/British currency due to a likely lengthy
banking shutdown.

Lengthy banking shutdown & foreign cash hording by embassies

Add all this up and we got some very dark things about to go down.

A true and direct barometer on how the nation is doing is how much
blood the IRS can suck out of its host, and recently the decline in
tax revenues has dropped more than anytime since the Great Depression.

Tax revenues @ Great Depression levels

So as it has gone on for decades, the ppl in power will bend the truth
some to paint things in a positive light to calm the restless natives.

Right now the truth is being bent beyond the point of recognition.

If you have not prepared for you debit card to not work,
your credit cards to not work, and checks to not be accepted
you may be in for a VERY rude awakening.

The true coup will be when hyperinflation makes the paper money
worthless.

Good Luck to you all !

[edit on 15-8-2009 by Ex_MislTech]

Originally posted by ldyserenity
Am I missing something here? It doesn't seem like a big difference. .1 percent? Please elaborate, thanks. Good post by the way, Just need a little more information.

not 0.1%, 0.1 Million more vacant properties, and that is ONLY residential properties, they aren't even counting commercial real estate

That is actually a 0.9% increase.

In a healthy economy, the foreclosure rate is about 0.1-0.3 %

So we are somewhere between 3 and 8 times worse off than a healthy economy.

reply to post by redhatty


Good explanation of the maths involved.

thanks!

Peeps getting foreclosed on need to stay in their homes until it's finalized. At least you'll have a roof over your head. Plus I have heard that if you request proof they own the mortgage, a lot of the banks have lost the paperwork and then cannot foreclose on you.

Please google "the real unemployment rate" take into account that some people have never worked and are not calculated in this and the ones that think they can live off the system and the ones that won't take a job because they think it is beneath them to empty trash or flip burgers.

If they took away all the free hand-outs that they give the lazy would be forced to get up and earn their keep.

Originally posted by saltdog
Please google "the real unemployment rate" take into account that some people have never worked and are not calculated in this and the ones that think they can live off the system and the ones that won't take a job because they think it is beneath them to empty trash or flip burgers.

If they took away all the free hand-outs that they give the lazy would be forced to get up and earn their keep.

You generalize quite a bit. What makes you think everyone getting hand-outs is lazy and unwilling to work? And what jobs? There's already thousands of applicants sometimes in some towns just to work at places like McDonalds. Many of the people on welfare right now are unable to find jobs because they are not there.