Posts filed under 'The Econ'
“Obama is in bed with Wall Street just like Bush” – Peter Schiff
Obama is in bed with Wall Street just like Bush Peter Schiff on SBS Dateline
Add comment November 10, 2009
Homes: About to get much cheaper
- By Les Christie, CNNMoney.com staff writer
Home values are predicted to drop in 342 out of 381 markets during the next year, according to a new forecast of real estate prices.
Overall, the national median home price is predicted to drop 11.3% by June 30, 2010, according to Fiserv, a financial information and analysis firm. For the following year, the firm anticipates some stabilization with prices rising 3.6%.
In the past, Fiserv anticipated the rapid decline in home-sale prices over the past few years — though it underestimated the scope.
Mark Zandi, chief economist with Moody’s Economy.com, agreed with Fiserv’s current assessments. “I think more price declines are coming because the foreclosure crisis is not over,” he said.
In fact, those areas with high concentrations of foreclosure sales will experience the steepest drops, according to Fiserv. Miami, for example, is expected to be the biggest loser. Prices are forecast to plunge 29.9% by next June — after having already fallen a whopping 48% during the past three years.
If Fiserv’s forecast holds, Miami real median home price will tumble to $142,000 by June 2011.
In Orlando, Fla., the second-worst performing market, Fiserv anticipates a 27% price collapse by June 2010, followed by a less severe drop the following year. In Hanford, Calif., prices are estimated to drop 26.9% and continue falling 9.5% in 2011; in Naples, Fla., they’re expected to fall 26.8% and then flatten out.
Other notable losers include Las Vegas, where prices have already fallen 54.6% and are expected to lose another 23.9% by June 2010. In Phoenix values have already collapsed by 54% and could fall another 23.4%. In both cities, Fiserv anticipates the losses to continue into 2011, but they will be less than 5%.
Prices had stabilized
The latest forecast is at odds with the past few months of the S&P/Case-Shiller Home Price index. That report has given hope that most housing markets may have already stabilized because the composite index of 20 cities rose in May, June and July. Nationally, it found that home prices have gained 3.6%.
Brad Hunter, chief economist for Metrostudy, which provides housing market information to the industry, however, expects a change in fortunes, however.
“I’m afraid Case-Shiller may be just a temporary reprieve,” he said.
He pointed out that the tax credit for first-time home buyers helped support prices during the three months of Case-Shiller gains. By the end of November, the credit will have been used by 1.8 million homebuyers, at least 355,000 of whom would not have bought a house without the tax break, according to estimates by the National Association of Realtors. But the market assistance ends when the credit expires on Dec. 1.
Hunter also sees a new wave of foreclosure problems coming from higher priced loans and prime mortgages. He expects a high failure rate for option ARM loans that were issued to prime customers so they could buy homes in bubble markets, such as California and Florida. In those areas, prices for even modest homes had skyrocketed.
Winners
A handful of metro areas will buck the trend, according to Fiserv. Six markets will remain flat, and 33 will actually post gains. The biggest winner will be the Kennewick, Wash., metro area, where home prices have ramped up 8.9% over the past three years and are expected to increase another 3.4% by June 2010.
Fairbanks, Alaska, prices are anticipated to rise 2.5%, while Anchorage will climb 2.1%. Elmira, N.Y., prices may inch up 1.8%.
The nation’s biggest metro area, New York City, will underperform the nation as a whole over the next two years, according to Fiserv. Prices, which have already fallen 21.7% to a median of $375,000, are expected to fall 17.4% by June 2011.
Home values in the nation’s second largest city, Los Angeles, have fallen 43.3% since June 2006 to a median of $313,000. They are expected to dive another 20.2% over by June 2010, and then start to climb in 2011. Chicago prices, which have fallen 25.2% to $227,000, will drop only 4.1% over the next 12 months and then starting to climb.
The Detroit metro area now has the dubious distinction of having the lowest home prices in the country. Prices have dropped 51.7% to a median of $50,000. They’re expected to fall another 9.1% and then stabilize.
Add comment October 20, 2009
Peter Schiff – Gold to Hit $5,000 Per Ounce & Talks Jive on Ben – 10.07.09
Add comment October 8, 2009
The New World Order is here
Russia Today gets the report right again! Why can’t CNN or FOX do this?
Watch, especially after .30 seconds. I’m really starting to HATE my country. Thanks Russia again for covering the FUCKING news that ABC, CNN or FOX should be covering!
An arrest that was made occurred on a side street near Baum Ave & S Millvale Ave.
The “Group of 20″ is meeting today and tomorrow in Pittsburgh. People have been demonstrating to counter the G20, a group of the richest, most powerful people from the richest, most powerful countries who make decisions which impact all of us. The past few times they have met they decided to bail out big banks, including the biggest, baddest bank of them all, the International Monetary Fund (IMF), which does nothing to help people. In addition, G20-style globalization policies have harmed the environment and threatened democracy everywhere.
Demonstrators went on the march through Pittsburgh without a permit, and police tactics effectively split up the group after about 45 minutes of marching. In the end only about 26 arrests were made.
Demonstrators are expected to march again tomorrow for a permitted and family-friendly rally and march, endorsed by many large organizations, which will start at Craft and Fifth Avenue in Pittsburgh at 11:30 AM. Bring kids and pets! More info: http://www.thomasmertoncenter.org/
The New World Order is here part #2 (especially after .30 seconds). I’m really starting to HATE my country. Thanks Russia again for covering the FUCKING news that ABC, CNN or FOX should be covering!
Add comment September 25, 2009
Bank of America says it won’t repay Government loan
Carl Gutierrez, 09.15.09, 05:00 PM EDT
Bank of America is trying to avoid paying back taxpayers for a $4 billion guarantee to cover its toxic assets
Bank of America is fighting against the Treasury Department’s claim that it owes taxpayers at least part of the $4 billion federal guarantee it received in January because the company benefited from announcing that it had the U.S. government’s backing.
Bank of America ( BAC – news - people ) has argued that it doesn’t need to pay the Treasury back because it was simply an oral agreement. Things looked differently nine months ago. During the company’s fourth-quarter conference call, which was held on Jan. 16, Chief Executive Ken Lewis announced BofA received a federal guarantee for $118 billion of toxic assets, most of which were accrued in its acquisition of Merrill Lynch, in addition to the $20 billion it received to complete the deal. (See “Ken Lewis Is Getting Lonely.”) Lewis said the guarantee was worth $4 billion and that it was essentially insurance protection.
During the same conference call, Joe Price, BofA’s chief financial officer, said that the firm had entered several agreements with a number of government agencies that would replenish capital and essentially provide insurance against the downside risk to the $118 billion pool in capital markets-related exposures.
BofA’s accompanying press release stated the government “agreed to provide protection against further losses on $118 billion in selected capital-markets exposure, primarily from the former Merrill Lynch portfolio.” According to BofA, “under the agreement” it would cover the first $10 billion in losses, while the government would cover 90% of any following losses, noting the bank would pay a premium of 3.4% of those assets for this program.
“It gave investors confidence that there was a quantifiable downside risk to the higher-risk Merrill assets,” said David George, an analyst at Robert W. Baird.
The picture changed on May 7. Within BofA’s response to the “stress test” results, it said it was “seeking an end to negotiations and to terminate its term sheet with respect to the proposed guarantee of approximately $118 billion in capital markets assets by the U.S. government. We believe that the expense of the asset wrap exceeds the potential benefit, especially since, even under our stress test conclusions, losses never exceed the initial $10 billion we would have to cover.” (See “For Most Banks, Not Too Stressful.”)
MORE HERE:
http://www.forbes.com/2009/09/15/lewis-bank-america-markets-equities-merrill-lynch.html
Add comment September 17, 2009
Peter Schiff: Americans must prepare for deepening unemployment, inflation and possible breadlines
Add comment September 17, 2009
This will be Michael Moore’s best film to date
This film had to be made and everyone in America needs to see it – twice. A year ago today the biggest robbery in the history of man took place with the assistance of the US Government. Your 401ks, IRAs and home values didn’t just disappear, they went to Wall Street and guess what? It wasn’t just Bush that let it happen, Obama voted for the bailouts and has continued to shovel money and power to Wall Street since taking office. There is no difference, skin color and speech doesn’t count. If for some reason your too damn closed-minded to watch it because Micheal Moore made it, please catch PBS’s version online (it’s on my blog) or Oliver Stone’s Wall Street 2 – which is due out early next year. This is big deal, the BIGGEST!
Add comment September 16, 2009
Ron Paul, CNN “American Morning,” 9/14/09
Congressman Ron Paul discusses his new book “End The Fed,” as well as other economic issues and Federal Reserve-related topics on CNN’s “American Morning.”
Add comment September 14, 2009
Why would you rehire him Obama?
Why would you rehire him Obama? Look, I know you’re a smart guy, but this is stupid. Because you’re a banker bitch.
Add comment September 1, 2009
Tom Woods on Glenn Beck – Tuesday July 7th, 2009 (Judge Napolitano as guest host)
On Tuesday, July 7th, 2009, guest Tom Woods, author of the New York Times bestseller “Meltdown,” had an insightful and lively discussion about General Motors on the Glenn Beck Show with attorney Steve Jakubowski and guest host Judge Andrew Napolitano.
Add comment August 27, 2009
Marc Faber – “The recent rally is the result of excess liquidity. The worst is still to come.”
Marc Faber – “The recent rally is the result of excess liquidity. The worst is still to come.”
Add comment August 17, 2009
