"There is danger from all men. The only maxim of a free government ought to be to trust no man living with
power to endanger the public liberty." - - - - John Adams

Sunday, June 16, 2013

Welcome to the new real estate bubble

The Next Housing Crash is Coming
Make sure to thank both the Democrats and the GOP when it explodes.

By Gary;

Party labels, Liberal or Conservative.  It does not matter.  The liars and hacks in Washington D.C. join ranks to protect their jobs and pump endless cash into the system to "stimulate" the economy.

Inflation?  Debt crisis?  Housing bubble?  Who the fuck cares . . . as long as it happens after the election day 2014.

You heard it here first.  A new, improved and maybe BIGGER housing bubble is building up.  If history is any guide the exploding bubble should be a real clusterfuck.

“We’re deep into uncharted territory: Amazingly low mortgage rates, a razor-thin inventory of homes for sale, and the release of years’ worth of pent-up demand. Plus there’s a seemingly endless stream of investors and non-investors who pay cash and thereby avoid the loan-qualification process. How this all plays out is educated guesswork at this point. Understandably, speculation continues over whether another housing bubble is forming,” said John Walsh, DataQuick president.

Welcome to double digit home price increases funded by rivers of money printed by the Federal Reserve and Congress. 

+13.5%    -    National Average Home Prices

  • +24.7%    -    Southern California
  • +29.8%    -    San Francisco Bay Area Counties
  • +26.5%    -    Honolulu
  • +29.3%    -    Chicago
  • +13.7%    -    Miami
  • +20.1%    -    Seattle
  • +32.7%    -    Las Vegas
  • +10.7%    -    Washington D.C.
  • +36.7%    -    Phoenix
  • +20.3%    -    Denver

These prices are not "real" when you have an economy with high unemployment and huge under employment plus 90 million people not even trying to work anymore.

See more at DQ News.com

A Bi-Partisan Housing Bubble.
The last housing bubble was funded by a Republican controlled Congress and a GOP President with massive government spending, Federal Reserve money printing, ultra-low interest rates, 100% easy qualifying home loans and no hard questions asked by Congressional oversight committees.
Today we have a bi-partisan bubble with Democrats in charge of the Senate and White House and the GOP in the House of Representatives.   What we are getting is massive government spending, Federal Reserve money printing, ultra-low interest rates, near zero down payment Federal financed home loans and no hard questions asked by Congressional oversight committees.
Remember - What goes up must come down.

No comments: