Housing In Free Fall Nasty Reccesion is set for 2007

blueskies · 2006-08-24T16:24:05Z

Doubtful Bush will finish his term. Given the external/internal turmoil,comatose Bush will go down some how. ---------- Recession will be nasty and deep, economist says Housing is in free fall, pulling the economy down with it, Roubini argues By Rex Nutting, MarketWatch Last Update: 4:59 PM ET Aug 23, 2006 WASHINGTON (MarketWatch) -- The United States is headed for a recession that will be "much nastier, deeper and more protracted" than the 2001 recession, says Nouriel Roubini, president of Roubini Global Economics. Writing on his blog Wednesday, Roubini repeated his call that the U.S. would be in recession in 2007, arguing that the collapse of housing would bring down the rest of the economy. Read more. Roubini wrote after the National Association of Realtors reported Wednesday that sales of existing homes fell 4.1% in July, while inventories soared to a 13-year high and prices flattened out on a year-over-year basis. See full story. "This is the biggest housing slump in the last four or five decades: every housing indicator is in free fall, including now housing prices," Roubini said. The decline in investment in the housing sector will exceed the drop in investment when the Nasdaq collapsed in 2000 and 2001, he said. And the impact of the bursting of the bubble will affect every household in America, not just the few people who owned significant shares in technology companies during the dot-com boom, he said. Prices are falling even in the Midwest, which never experienced a bubble, "a scary signal" of how much pain the drop in household wealth could cause. Roubini is a professor of economics at New York University and was a senior economist in the White House and the Treasury Department in the late 1990s. His firm focuses largely on global macroeconomics. While many economists share Roubini's concerns about imbalances in the global economy and in the U.S. housing sector, he stands nearly alone in predicting a recession next year. Fed watcher Tim Duy called Roubini the "the current archetypical Eeyore," responding to a comment Dallas Fed President Richard Fisher made last week in referring to economic pessimists as "Eeyores," after Winnie the Pooh's grumpy friend. "By itself this slump is enough to trigger a U.S. recession: its effects on real residential investment, wealth and consumption, and employment will be more severe than the tech bust that triggered the 2001 recession," Roubini said. Housing has accounted, directly and indirectly, for about 30% of employment growth during this expansion, including employment in retail and in manufacturing producing consumer goods, he said. In the past year, consumers spent about $200 billion of the money they pulled out of their home equity, he estimated. Already, sales of consumer durables such as cars and furniture have weakened. "As the housing sector slumps, the job and income and wage losses in housing will percolate throughout the economy," Roubini said. Consumers also face high energy prices, higher interest rates, stagnant wages, negative savings and high debt levels, he noted. "This is the tipping point for the U.S. consumer and the effects will be ugly," he said. "Expect the great recession of 2007 to be much nastier, deeper and more protracted than the 2001 recession." He also sees many of the same warning signs in other economies, including some in Europe.

RoguePostman

(@roguepostman)

Posts: 616

Honorable Member

Yeah, itz fucking coming.........and itz bringing the pain with with it. Are you ready??

Own a pick-up truck? I'd invest in a cab for it real quick.

Got your bug-out kit ready and waiting with at least 3 days worth of supplies?

What about an escape route? Do you have one, and do your loved ones know it as well? Got cammo cover that will conceal your hideout from ground and aerial observation?

If you are well-prepared, do you have the weaponry and ammo to protect yourself from those who aren't? Start buying that ammo now......LOTS of it!

Those "survivalist wackjobs" aren't sounding so crazy right about now, are they?

Want more info: http://www.survivalist.info

Good luck!

http://www.aryan-nations.org

Posted : 26/08/2006 9:24 am

Backwoods

(@backwoods)

Posts: 166

Estimable Member

Thats right Mr postman, we can all wish for the wheels to come off, but we all damn well better have enough firearms for ourselves (and preferably a few others) and enough ammo for all of them, the more the better.

Posted : 26/08/2006 2:38 pm

blueskies

(@blueskies)

Posts: 2231

Famed Member

Topic starter

Global Trends May Hinder Effort to Curb U.S. Inflation
JACKSON HOLE, Wyo., Aug. 27 — As the Federal Reserve fiercely debates how to reduce inflation within the United States, economists are warning that trends outside the country may soon make the Fed’s job much harder.

Beyond that, new research presented this weekend suggested that the United States could not count on a continuation of cheap money from poor countries. Those flows could stop as soon as countries find ways to spend their excess savings at home.

The warnings come as the Fed’s new chairman, Ben S. Bernanke, faces widespread skepticism among economists about his forecast for a “soft landing” — a mild slowdown that will tame inflation without costing many jobs.

Inflation is already running above Mr. Bernanke’s unofficial target — 2 percent a year, excluding energy and food prices — and few analysts here say they believe the Fed will raise rates and slow growth enough to bring inflation down to its target anytime soon.

They are in a box, and they know it,” said John H. Makin, an economist at the American Enterprise Institute and a hedge fund manger. “It’s an awkward position for them to be in.”....more
http://www.nytimes.com/2006/08/28/business/worldbusiness/28fed.html?_r=1&adxnnl=1&oref=slogin&adxnnlx=1156770763-Glk3/tFTneUoAbhfDWQUxQ

Posted : 28/08/2006 6:45 am

James Woroble Jr.

(@james-woroble-jr)

Posts: 626

Noble Member

Research, info, and news on the Housing Bubble & Real Estate Crash that is going to tank home prices in many parts of the USA

http://www.homepricebubble.com/

[color="Red"]
IT$ COMING!

75-90% depending on the location inside the toilet bowl.

-
-
-

All is for naught without a good edJEW(K)shen.

[ Educational sites ]

The Jewish Tribal Review

JewWatch

WhatReallyHappened

Joe Vialls Investigations

Judicial Inc.

NJ Unfiltered

Vanguard News Network

Posted : 28/08/2006 9:17 am

Vanguard News Network

Forum

LOXIST CULTURE

OUR CULTURE

WORLD

About

Contact Us