Home prices during the troubling five years of 1928 through 1933 saw a decline of 25.9 percent nationwide and this was during the Great Depression.
The latest Case-Shiller data shows that home prices in the 20 City and 10 City composite measures are down by 32 percent from their 2006 peak. (Source)
Home prices have been falling steadily since the summer of 2010. The fact that we still have close to 7,000,000 homes in the shadow inventory tells us that we still have a long way to go before any normal housing market is restored.
This by far is the worst housing collapse ever and it is still ongoing.
Some related statistics about the U.S. real estate crisis: (Source)
- According to Zillow, 28.4 percent of all single-family homes with a mortgage in the United States are now underwater (i.e., owe more on their mortgage than the home’s value).
- Zillow has also announced that the average price of a home in the U.S. is about 8 percent lower than it was a year ago and that it continues to fall about 1 percent a month.
- U.S. home prices have now fallen a whopping 33% from where they were at during the peak of the housing bubble.
- According to RealtyTrac, foreclosure filings in the United States are projected to increase by another 20 percent in 2011.
- Two years ago, the average U.S. homeowner that was being foreclosed upon had not made a mortgage payment in 11 months. Today, the average U.S. homeowner that is being foreclosed upon has not made a mortgage payment in 17 months.
- Sales of foreclosed homes now represent an all-time record 23.7% of the market.
- According to a recent census report, 13% of all homes in the United States are currently sitting empty.
Our leaders are doing everything that they can to turn all of this around.
Everything is under control.
Our Goose is Cooked
This must be what it was like in Russia before the Soviet Union collapsed. The government’s so crooked that nothing works right, the infrastructure’s in a shambles, millions of people are scraping by on government handouts, and everyone’s on a permanent downer. Welcome to the United States of America 2011.
I mean, seriously, things are really looking bad. Apart from killing people, we really don’t do anything anymore. We have a humongous, over-bloated military that lumbers from one war to the next spreading misery wherever it goes, and meanwhile, back at home, things continue to go to the dogs. How long can that go on?
You can’t get a job anymore, because all the jobs have been shipped off to Guandong Province or someplace South of the border. The best you can hope for is some part-time gig jerking double-tall-mochas or steering folks towards the red-dot special on Aisle 9. So, how can you sustain a middle class on a measly $9.50 per hour? It can’t be done.
And just look at Washington. What a joke. The White House is just a protection racket for big business. And Congress, well, what can you say about congress? We’d be better off if they just packed their bags and went home for all the good they do. Then at least we could turn the House of Representatives into a homeless shelter or something that had some practical value for people. At any rate, we wouldn’t have to listen to the bloviating of numbskulls like Mitch McConnell and Harry Reid anymore. That’s got to be worth something.
You know our goose is cooked, don’t you? You know we’re not going to get out of this, right? The country is disintegrating. It’s obvious. It isn’t even America anymore; it’s like we’re on some kind of movie set where everything looks real, but it’s all just props. Everything is perfectly placed to make you feel like you still live in a free country, you know, like the way things were before the government started spying on you or going through your mail or beating you up for standing outside the state building with a sign or arresting you without charges and dragging you to some far-flung blacksite where they keep you in a 6 ft. box until they want to waterboard for the millionth time. Yeah, everything still looks the same, but it’s all changed. Everything’s different now.
You watch news, right? It’s all propaganda; every bit of it. In fact, they all read from same script. Maybe you went to some toffeenose college so you prefer PBS’s Jim Lehrer News Hour, because you’re smart and you want more “in depth” coverage. So, you get two brainy experts on each segment. Big deal. But, there’s one little problem, isn’t there? Both experts are from corporate-funded think tanks, and both of them have exactly the same views on every single issue. No difference at all. But you think, “Hey, at least public TV airs different opinions.” Right.
It’s all George Orwell. It’s all 1984. You know that. That’s why we’re all so frustrated. It’s bad enough that the country’s going to Hell in a handbasket, but it’s even worse that they have to lie to you about it 24-7. That just reinforces the feeling that we’re all goners; that the whole society is just propped up on one big freaking lie.
Have you looked around lately? Have you noticed the women at the grocery store who keep their head’s down at the checkout stand while they load the boxes of mac n’ cheese onto the conveyor-belt hoping like Hell that one of their credit cards will be accepted? Have you noticed that there are more kids at school showing up like ragamuffins and piling into the cafeteria for a free lunch. Have you been to a state park lately and seen the people who sleep in their cars at night and then spend $.50 to shower in the public restrooms. Have you taken a look under the freeway overpasses where small encampments are turning into tent cities.
I’m telling you, our goose is cooked.
The other day my bank shut-down after 30 years in business without any sign they were in trouble.
Whoa. You talk about shattered confidence; that’ll do it every time. There I was in a long line of nervous-looking 50-somethings chewing on their lower lips and scowling while they made their way through the front door of the bank.
“Er, Mr. Bank Teller, could you tell me; do I have any money left?”
Don’t kid yourself, when your bank goes under, it changes your world view. And it changes your feelings about America, too. Forget about security; it doesn’t exist anymore. They’ll fleece you out of your life’s savings without batting an eye. Bankers are all crooks, every last one of them. And we’re all just chickens for-the-plucking.
There was an article in USA Today that really sums up how bad things have gotten. The article is titled “Feds chase more student loan defaults”. Here’s a clip:
“The government increasingly is threatening to sue people who’ve defaulted on their student loans to get the money back. The number of loan defaults that the Education Department has referred to Justice Department lawyers for possible legal action has risen dramatically since before the recession and nearly doubled from 2009 to last year….
If the government does sue, it can go after wages and bank accounts, put liens on people’s property and hold parents responsible for their children’s debt if they co-signed the education loans. “The most important thing to remember is we want the loans repaid,” says Jane Glickman, Education Department spokeswoman.
Can you see how sick this is? Since when has the Justice Department become a collection agency for private industry? Let the banks hire their own goons for Chrissake. They’d probably like that better that anyway.
And why is the DOJ shaking down our kids when the guys on Wall Street who created this mess are still slurping Bordeaux and figuring out new ways to ripoff Uncle Sugar? The whole thing is backasswards.
Any country that preys on its kids to make a few bucks is on it’s last legs.
America’s lost its way. Sooner or later we going to wind up in the same dustbin as the Soviet Union.
Mike Whitney (Source)
What’s Wrong With This Picture?
The numbers continue to astound. The GOP House plan to slash over $900 million from three federal nutrition programs could deprive up to 500,000 women, infants and children – and they threw in some seniors for good measure – of the food they need. Most of that – $833 million – is equivalent to one week’s worth of Bush tax cuts for the rich. It would reduce the federal deficit by less than one-tenth of a percent. They call this “righting the ship.” Positively Orwellian. (Source)
- Housing Can Still Get Worse (finance.yahoo.com)
- Housing Prices Continue Downward (economicnoise.com)
- 20 Startling Facts About the US Housing Market (ritholtz.com)
- Existing-Home Sales in U.S. Decrease 0.8% to 5.05 Million Pace (businessweek.com)
- The Economic Recovery Fantasy (businessinsider.com)
- Housing Double Dip: Why Prices Will Keep Dropping (thefiscaltimes.com)