Shiller: Home downturn could be worst since Depression
Robert Shiller, who wrote the prescient Irrational Exuberance about the stock market bubble, has been predicting similar things for housing for a long time.Today before Congress he said that declining home prices will cause new financial crises and that this housing downturn could be the worst since the Great Depression. That last part is hyperbole. It will almost certainly get worse. But it won't be nearly as bad as in the Depression, or even as in the early 1980s, when mortgage rates hit 17 percent or so and the home market froze solid. Well-qualified borrowers can still get fixed-rate mortgages for 6 percent. At some point, as prices come down (and rates should fall further, too), they'll be buying houses. This home slump will be worse than the one in 1990, not as bad as 1980 and not nearly as bad as 1930.
Comments
Subprimes are not he only culpret in this housing debacle
This is going to continue to take it's topl unless/and until someone listens to the victims and learns the truth.
Our homes are being taken from us and the builders are hiding behind the the arbitration atrocity. How can this be corrected when it is not even acknowledged?
Oversight Testimony
Written Testimony Submitted by Jordan Fogal To The Subcommittee on Commercial and Administrative Law “Mandatory Binding Arbitration Agreements: judiciary.house.gov/OversightTestimony.aspx?ID=9... - 154k -
Court house doors are blocked. http://www.cityviewmag.com/stories-the-case-of-the-vanishing-trial_85.html
Consumer confidence is at an all time low. See our pictures, the real reasons for our foreclosures. We are responsible citizens and these are crooks: constructing defective, substandard housing and hiding behind arbitration clauses.
http://www.myspace.com/jordanfogal.
Finally, someone does some investigative journalism
http://www.msnbc.msn.com/id/20393984/
The Consumerist - New York,NY,USA
: We did not understand the true ramifications of arbitration, or it's unfairness. No one who has not been caught in this snare does. ...
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Posted by: Jordan Fogal | September 20, 2007 9:01 AM
Hope you can refresh me on an article recently in which you indicated a bleak forecast for 2009/2010 for the stock market....I put the item aside and now cannot locate it and would really appreciate your help.
Thanks in advance....
Jack Martin
Posted by: Jack Martin | October 14, 2007 3:43 PM