Housing Bubble Bursting?

[MARK JOLLIFF]

Go to You Tube and enter "Banks of America". Six part series on the history of the federal reserve by Aaron Russo. Fascinating!

 

[Austin]

Unpaid Credit Cards Bedevil Americans
SAN FRANCISCO (AP) -- Americans are falling behind on their credit card payments at an alarming rate, sending delinquencies and defaults surging by double-digit percentages in the last year and prompting warnings of worse to come....

 

[Restrain]

The financial writer for the Dallas Morning News took the local BOR to task for the real estate reports showing an increase in values. He pointed out that there was an increase in sales in the $700K+ homes, while lower end sales were off big time, skewing the average sales price upwards.

The bulk of the sales activity that drives a market is in the lower half of the market. If these are not moving, the market is not moving.

Cavuto has been shilling for the big banks and Wall Street, setting there and not seeing what's going on outside of New York. Unemployment at 4.5% is hogwash. It doesn't count those who have given up trying to find a job, it doesn't count those who were laid off at $25/hr and are now working at $8/hr at Home Depot. It doesn't count those who are self-employed and are struggling to get by because they can't get operating capital from the bank for their small business.

Perhaps these economic talking heads shoud get out of NY.

 

[Restrain]

5000 posts on this. WOW!

 

[Riick]

Unpaid Credit Cards Bedevil Americans
SAN FRANCISCO (AP) -- Americans are falling behind on their credit card payments at an alarming rate, sending delinquencies and defaults surging by double-digit percentages in the last year and prompting warnings of worse to come....

THAT is especially negative / indicative News - since change in bankruptcy laws makes it much harder to wipe off CC debt - consumer
can often be forced into Chapter 13 repayment plans.
So people were defaulting on Mtg.debt before CC debt.

Here's a quick summary -- outtake below:
``Be careful what you wish for,'' Westbrook said. ``They wanted to make sure that people kept paying their credit cards, and what they're getting is more foreclosures.''

Now sharply rising CC debt defaults in addition to forclosures?
Hoo Boy!
|

 

[Couch Potato]

So much for BoA helping the market.

 

[moh malekpour]

U.S. Home Prices Fell 6.1% in October, Index Shows

Property values fell 6.1 percent from October 2006, more than forecast, after dropping 4.9 percent in September, according to the S&P/Case-Shiller home-price index. The decrease was the biggest since the group started keeping year-over-year records in 2001. The index has fallen every month this year.

 

[Randolph Kinney]

I wonder how the Case/Shiller index data will compare against NAR data when it is published? Or will that be so discounted that it won't make headline news?

 

[Randolph Kinney]

Xmas spending called "weak" - slowdown is here

Holiday Spending Is Weak, as Retailers Expected

Uneasy about the economy and unimpressed by merchandise, American shoppers delivered the bleak holiday shopping season retailers had expected. Spending rose just 3.6 percent over 2006. By comparison, sales grew 6.6 percent in 2006 and 8.7 percent in 2005.

Strong demand at the start of the season for a handful of must-have electronics, like digital frames and portable G.P.S. navigation systems, trailed off in December. And robust sales of luxury products could not make up for sluggish sales of jewelry and women’s clothing.

What did eventually sell was generally marked down — once, if not twice — which could hurt retailers’ profits in the final three months of year. “Stores are buying those sales at a cost,” said Sherif Mityas, a partner at the consulting firm A. T. Kearney, who specializes in retailing.

Unsatisfied with sales so far, dozens of retailers, from the high-end to the low, will start slashing prices Wednesday morning.

 

[Riick]

Uneasy about the economy and unimpressed by merchandise, American shoppers delivered the bleak holiday shopping season retailers had expected. Spending rose just 3.6 percent over 2006. By comparison, sales grew 6.6 percent in 2006 and 8.7 percent in 2005.

Frankly, I'm flabbergasted that sales rose at all.
I wonder if this is preliminary data, like we get from the Feds -- subject to revision once the Santa Claus Rally ends on 12/31