Party Like It's 1999
Allen Sinai, chief economist at Decision Economics:
"We're in a recession. It's going to widen, it's going to deepen."
Harvard University Professor Martin Feldstein:
The U.S. may now be in a "very long" recession that will drive the unemployment rate higher, with little that the Federal Reserve can do to help.
Feldstein, who headed the National Bureau of Economic Research until June:
"I don't see recovery on the horizon. I don't think that there's much the Fed can do one way or the other at this point.
The little boost that we got from the tax rebates we will give up in the third and fourth quarters. We're in for higher levels of unemployment and job losses."
Alfred E. Greenspun, former Fed head and creator of the mess: Fannie Mae and Freddie Mac, are a "major accident waiting to happen".
U.S. home prices are "nowhere near the bottom" and the resulting market turmoil isn't showing signs of abating.
The Nattering One muses... Almost $1.3 trillion of homeowner equity was lost in California since home prices peaked in December 2005.
According to the NAR, home sales have increased 3 straight month, due to 40% of all sales coming from increasing record level foreclosures.
Fifty cent... Homes in Stockton, CA are selling at 50 cents on the dollar...
In Long Beach, CA. a waterfront condo (in need of remodel) which sold in late 2000 for $235K is on the market for $299K, fully remodeled.
A remodeled LB home which sold in 1998 for $225K, at market peak it was valued at $750K, after 24 months on the market, a short sale at $430K with no takers.
Thirty cent... Cape Coral, Fla homes are now selling close to Merrill CDO prices... 30 cents on the dollar.
A yacht club home that sold in April 06 for $650K; March 04 for $258K and March 1998 for $85K; is now selling for $190K.
The Artist Formerly Known As Prince... The Nattering One now suspects that 1999 prices, rather than 2001 prices, might be closer to the bottom.
Hattip to Bloomberghere and here.
"We're in a recession. It's going to widen, it's going to deepen."
Harvard University Professor Martin Feldstein:
The U.S. may now be in a "very long" recession that will drive the unemployment rate higher, with little that the Federal Reserve can do to help.
Feldstein, who headed the National Bureau of Economic Research until June:
"I don't see recovery on the horizon. I don't think that there's much the Fed can do one way or the other at this point.
The little boost that we got from the tax rebates we will give up in the third and fourth quarters. We're in for higher levels of unemployment and job losses."
Alfred E. Greenspun, former Fed head and creator of the mess: Fannie Mae and Freddie Mac, are a "major accident waiting to happen".
U.S. home prices are "nowhere near the bottom" and the resulting market turmoil isn't showing signs of abating.
The Nattering One muses... Almost $1.3 trillion of homeowner equity was lost in California since home prices peaked in December 2005.
According to the NAR, home sales have increased 3 straight month, due to 40% of all sales coming from increasing record level foreclosures.
Fifty cent... Homes in Stockton, CA are selling at 50 cents on the dollar...
In Long Beach, CA. a waterfront condo (in need of remodel) which sold in late 2000 for $235K is on the market for $299K, fully remodeled.
A remodeled LB home which sold in 1998 for $225K, at market peak it was valued at $750K, after 24 months on the market, a short sale at $430K with no takers.
Thirty cent... Cape Coral, Fla homes are now selling close to Merrill CDO prices... 30 cents on the dollar.
A yacht club home that sold in April 06 for $650K; March 04 for $258K and March 1998 for $85K; is now selling for $190K.
The Artist Formerly Known As Prince... The Nattering One now suspects that 1999 prices, rather than 2001 prices, might be closer to the bottom.
Hattip to Bloomberghere and here.
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