Study: Housing Collapse Steeper Than During Great Depression

[WillowTree]

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..

 

[Soggy in NOLA]

Yeeeeeeeeeeeeeee Hawwwwwwwwww!

It's the summer of recovery!

 

[WillowTree]

Get rid of Fannie and Freddie.

 

[NYcarbineer]

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.

 

[Gadawg73]

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.

 

[WillowTree]

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.

You could be correct the demonRats may have it FUBAR..

 

[Truthmatters]

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?

 

[Avorysuds]

Grats Bush and Obama for fucking up the country while you make your friends and selves rich!

 

[California Girl]

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?

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

 

[Gadawg73]

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?

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

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.

 

[Truthmatters]

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?

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

I am furious with the people who bought and paid for this situation to be created.

That was corporate America.


They fought for the laws to be changed so they could profit and now want more of the same crap that caused this.

Some politicains fight for the Corps rights to fuck us all again.

 

[Truthmatters]

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?

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

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.

No WE didnt.

The elections were tampered with and there iss pleanty of evidence of this.

 

[BlindBoo]

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?

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

How about being furious at both political parties because they are both to blame.

 

[Truthmatters]

I blame corprate influence for this mess.

They bought and paid for the policies that created this mess.

 

[auditor0007]

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..

You really need to get your head out of the sand if you think it was the Democrats who pushed all this excess building of new homes and that they were the ones solely responsible for the easy credit. One of Bush's biggest goals was to make as many people as possible homeowners. In the process, he helped create an environment where people who shouldn't be buying homes were not only buying homes, but buying homes much bigger than they should have ever been permitted to purchase based on their incomes. If we ever want to try to address our problems, we better all wake up and realize that this wasn't something created solely by either party.

Slaughter of the Housing Speculators | Richard Benson | Safehaven.com

 

[Gadawg73]

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

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.

No WE didnt.

The elections were tampered with and there iss pleanty of evidence of this.

Then who tampered with it and allowed that?
Martians?

 

[Gadawg73]

I blame corprate influence for this mess.

They bought and paid for the policies that created this mess.

Corporate America twisted the arm of my neighbor to run up his credit cards every 2 years, get a higher mortgage that he could not pay for so he could travel to Jamaica and Punta Cana 4 weeks each year?
They forced him to give up his home, which he could still afford, because the value now is what IT SHOULD HAVE BEEN?
No one was forced to do a damn thing.

 

[Truthmatters]

Are you familiar with the Floridas felons list?

Have you heard of Clint Curtis?

 

[Truthmatters]

I blame corprate influence for this mess.

They bought and paid for the policies that created this mess.

Corporate America twisted the arm of my neighbor to run up his credit cards every 2 years, get a higher mortgage that he could not pay for so he could travel to Jamaica and Punta Cana 4 weeks each year?
They forced him to give up his home, which he could still afford, because the value now is what IT SHOULD HAVE BEEN?
No one was forced to do a damn thing.

Heres a tip that works to figure out who planned what to make money.

FOLLOW the MONEY.


If you are too uninformed and or dull you may not be able to figure out who set you up.

 

[Meister]

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?

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

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.

The two parties are polarized with an "Us vs Them" mentality.