Study: Housing Collapse Steeper Than During Great Depression

Discussion in 'Economy' started by WillowTree, Jun 15, 2011.

  1. WillowTree
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    WillowTree Diamond Member

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    The author of a study claiming the U.S. housing collapse is now worse than during the Great Depression warned Wednesday that the market likely will continue to fall for the rest of the year before going stagnant.

    Paul Dales, senior U.S. economist for Capital Economics, predicted home prices would fall another 3 percent over the rest of 2011 before potentially hitting bottom.

    "Even when that happens, I don't think we're going to see any significant or sustained rises," he told FoxNews.com Wednesday, predicting "a couple years of pretty much no recovery whatsoever."

    The bleak prediction comes after he released a report estimating that since the collapse began from the pricing peak of 2006, prices have fallen 33 percent -- more than the 31 percent dive recorded between the 1920s and 1930s.

    The data, from Capital Economics, underscores the trouble the U.S. economy is having emerging from what is described as the worst recession since the Great Depression. "The sharp fall in house prices in the first quarter provided further confirmation that this housing crash has been larger and faster than the one during the Great Depression," the analysis said.




    Dales said the collapse has eclipsed that of the Great Depression because the boom that preceded it was much bigger. Unlike during the 1920s, access to the housing market was far more open leading up to 2006.


    Read more: Study: Housing Collapse Steeper Than During Great Depression - FoxNews.com










    So much for thinking everyone can own a $750,000 dollar house even when they have no income. way to go democrats..
     
  2. Soggy in NOLA
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    Soggy in NOLA Platinum Member

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    Yeeeeeeeeeeeeeee Hawwwwwwwwww!

    It's the summer of recovery!
     
  3. WillowTree
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    WillowTree Diamond Member

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    Get rid of Fannie and Freddie.
     
  4. NYcarbineer
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    NYcarbineer Diamond Member

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    That supports the argument that the stimulus wasn't as effective as some thought it would be simply because things were much worse than thought.

    Excellent.
     
  5. Gadawg73
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    Gadawg73 Gold Member

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    Considering the deviation in the average home in the 30s was maybe from an 800 sf home to a 1000 sf foot home and the geographical deviations also the comparisons to a market that far back are useless.
    Add in the appraisal processes at work then compared to now and how that influenced lending practices and you end up with no comparison whatsoever to the Great Depression.
    Doesn't take away from the general premise that the market is going no where soon but making comparisons to the home market 80 years ago have no merit.
     
  6. WillowTree
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    WillowTree Diamond Member

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    You could be correct the demonRats may have it FUBAR..
     
  7. Truthmatters
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    Truthmatters BANNED

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    Yes the housing prices are worse than the GD.

    The crash was because of the inflated prices of homes do to very poor regulations and the inforcement of any exsisting regulations.


    Now why would you be surprized a housing bubble this big would not be anything but that?
     
  8. Avorysuds
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    Avorysuds Gold Member

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    Grats Bush and Obama for fucking up the country while you make your friends and selves rich!
     
  9. California Girl
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    California Girl BANNED

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    Yep. Are you not furious with the Democrats for their part in this? I am.
     
  10. Gadawg73
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    Gadawg73 Gold Member

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    Yes, politicians be they Democrat, Republican or Bull Moose Party all played a part in this.
    But be furious and pass the blame to a 3rd party was not how I was raised.
    CITIZENS are accountable for their own actions and it is all of our faults first and foremost for allowing it to happen.
    If we do not hold politicians accountable, as we surely do not these days as half the population do not vote or pay taxes as they brag about how they can easily get out of jury duty, then we can only blame OURSELVES.
    We elected ALL OF THEM.
     

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