Who Owns the US Senate? The US Senate rejected the ‘cram-down’ measure that would have helped homeowners who have mortgages they cannot pay while penalizing investors who have mortgages that aren’t being paid. Or, as Sen. Dick Durbin (D-Ill.) said recently, “The banks, frankly, own the Senate.” (Source.) Thank you for clearing that up Mr. Senator.
Housing prices to bottom in 3 years: House prices tend to deflate 3% per quarter until housing supply inventory is below an eight month supply. Even if no houses are built, demand is so weak and unsold inventory so high that it would take three years to reach that point. Let’s see, 12 quarters at 3% compounded is a further house price deflation of… 40%? BUT as prices fall even more unsold homes are forced onto the market, making this an optomistic forecast. Yikes!