and the beat goes on….
That’s no ordinary twister folks!
That is falling housing prices…Kudlow used to play this clip and laugh at A Gary Shilling who called this crisis for what it was in 2005..no one is laughing now….how many people can afford to take a 50% drop in their home values? In Phoenix we are there already….the only good news I can see in this report is surely Team Obama will MOVE on housing NOW…(hey don’t call me shirley…)
Professor Blitzer of S & P reporting live on CNBC says 11 of 20 cities across the country are in record declines…
Prices fell 3.4% in Phoenix and 3.3% in Las Vegas in November. In the past year, prices were down 33% in Phoenix, 32% in Las Vegas, and 31% in San Francisco.
Falling home values have helped to plunge the global financial system into chaos because of mortgage-backed securities. Home owners have lost trillions of dollars of wealth
Prices of single-family homes plunged a record 18.2 percent in November from a year earlier, indicative of a housing market that is still in the throes of a deep recession, according to the Standard & Poor’s/Case-Shiller Home Price Indices.
The composite index of 20 metropolitan areas fell 2.2 percent in November from October, S&P said in a statement on Tuesday. The depreciation on a month-over-month basis was slightly worse than expectations based on a Reuters survey of economists.
The freefall in residential real estate continued through November 2008,” David M. Blitzer, Chairman of the Index Committee at Standard & Poor’s, said in a statement.
Why Case-Schiller Index matters to you courtesy of the Examiner:
…If you want to understand the Case Shiller index better, I recommend the multimedia graph set up by the New York Times. It shows each individual city, and looks back to 2001, so you have a better perspective on how prices have trended, instead of just hearing the year over year or month over month number. This page is dedicated to the index….
This economy will NOT improve until housing is addressed, period. Get to it Team Obama….
Here is Gary Shilling telling us what was coming in November of 2006…taking heat from Bulls like Luskin and Kudlow…note the DOW closed over 12,000 in this clip from 11/27/06….as they discuss Goldilocks economy and laugh at Gary Shilling’s warnings about the housing bubble…not laughing much now….
View full presser on CSPAN here
House Financial Services Committee Chairman Barney Frank today proposed legislation setting terms for releasing the remaining $350 billion of financial-rescue funds, seeking as much as $100 billion to stem foreclosures.
Frank’s measure, reflecting lawmakers’ criticism over how the first half of the $700 billion rescue fund was used by President George W. Bush, would require President-elect Barack Obama’s Treasury Department to develop a foreclosure-prevention plan by March 15 and put it in place by April 1.
Among the proposals: tougher executive compensation restrictions on companies accepting Tarp funds and bans on corporate jets and other perks.
“[What] I’m going to tell the banks is, ‘look, you don’t like these [conditions] but would you rather have no $350bn?’ ” Mr Frank told reporters.
The bill would also widen access to the remaining $350bn of Tarp funds beyond the big Wall Street institutions that dominated the first tranche.
A “significant” share would be directed at homeowners facing foreclosure, while local governments, real estate companies and car dealers would also receive help.