Housing Price Problems

Highlights
* Nationally we are now at 2002 price levels.
* Case Shiller down 19.1% Yr/Yr
* The damage is spreading beyond the Sun Belt states.
* No precedent for this price decline on a national scale.
* The Case Shiller has fallen 32.2% since it peaked in Q2 2006. (FYI, the CMR is on record that we were in a "lending bubble" in Q3 2006.)
* Foreclosures becoming an important part of the market. (We knew this a long time ago also)



I included the video below because these analysts back up everything I have been saying for a long time. If you want to stop and fix the real estate market problems you have to fix the foreclosure problems. EASIER SAID THAN DONE!

Jack McCabe mentions the banks need to begin taking principal reductions in order to unfreeze the real estate markets. I do not believe Jack has been talking to banks like I have because this is not happening for many different reasons. Most banks do not want to take a "haircut" or principal reduction because they do not want to have to write down their "Falling Knife" assets which they made horrible loans on during the "Go Go" days. They are stalling folks and waiting on the Accounting Mesiah to come along and make all their toxic loans disappear.




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