<My point in posting it after chambers comments is that something seems to have gone wrong in january that is surprising bernanke, chambers, walmart etc. Even normal reporters are saying that home prices may decline nationally by 30% before htis is all over.>
I understand. Here's my point though. Clicks on articals equal revenue. Fear you into reading them from the lure of dire predictions (ie playing on current fears) equals their revenue plan.
Now that said, you are right something has changed. The banks are in a full blown panic and are cutting credit off. Don't know what the banks expect to accomplish from that. In simple terms Banks loan money, if they don't loan money they don't make a profit. If the economy comes to a stand still the banks do as well.
Bernanke and the rest of the Fed Fools are not surprising. They haven't seen clearly or responsibily for years now. It didn't go wrong in January. It went wrong when rates went abnormally low, then proceeded to ramp up without pause. It went wrong when the Fed Fools stayed 6 months behind the curve and refused to cut rates when it was obviously necessary to everyone else involved. Business and discretionary spending came to a stand still while they waited on the Fed Fools to create better financial terms for them. Didn't you see this coming from 1% to the what was it 5.50% recent top? Couldn't you see what the Fed Fools did not?
Home prices falling by 30% nationally. Ok yeah alright. Right after building products and labor fall an equal amount. 30% in bubble areas where a run down shack went for $1 Million has no bottom. 30% drops for insane properties that were bid up on pure greed and speculation means nothing. They might drop 70%. No joke. The flip side of that is areas where prices did not go to extremes, that would also be known as basically anywhere not in Cali, Fla, Vegas, and the desert. Prices did not double in the SouthEast, even despite the influx of people from high priced areas. You're still talking around $100 a square foot, (2500 sq ft for $250,000). You're just not dropping 30% from there without a similar drop in all construction materials, labor, land development costs, and some disaster like Bush declaring himself dictator for life <ng>. |
