Economy rebound is here.. If you ignore the data.. Home sales, lowest level in 50 years
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These kind of severe recessions waves usually happen every 60 to 70 years and last 23 years up to in some cases 26 years. Anyway this lower level of new home sales is good news and it will be good to see house prices come down more.
The Commerce Department reported Wednesday that new home sales dropped 11.2 percent last month to a seasonally adjusted annual sales pace of 309,000 units, the lowest level on records going back nearly a half century.
So people are borrowing less - wasn't the loose mortgage lending standards considered part of the problem in the large number of defaults and foreclosures? Is this also a sign of tighter lending standards - no more 0% down mortgages, perhaps? I would be more worried if sales once again increased - maybe this is a sign that Americans are learning to live within their means.
Americans are saving more and borrowing less.
That may be "bad" for the economy, and unfortunately affects jobs. But, instead of building up the house of cards that credit spending creates, maybe this is a sign that responsibility is creeping back into the system.
So people are borrowing less - wasn't the loose mortgage lending standards considered part of the problem in the large number of defaults and foreclosures? Is this also a sign of tighter lending standards - no more 0% down mortgages, perhaps? I would be more worried if sales once again increased - maybe this is a sign that Americans are learning to live within their means.
Americans are saving more and borrowing less.
That may be "bad" for the economy, and unfortunately affects jobs. But, instead of building up the house of cards that credit spending creates, maybe this is a sign that responsibility is creeping back into the system.
Or maybe not.
I also saw where existing home sales were UP by 15% since the previous year in December, but the January figures are not out for a couple more days.
There has not been anytime in our history that anyone of us has seen things this bad. All thanks to Obama not creating the 5 million new jobs as promised and losing 9 million jobs total.
If had only worked on job creation a year ago instead of spending every single day on the HC scam many of your friends could have saved their homes.
But no, the poor decision making idiot worked on the WRONG problem.
The problem is that we don't export enough to pay our bills. We don't export enough because our products are too expensive. Our products are too expensive because we try to hide our unpaid bills in the cost of our exports. Our economy will rebound when we it makes economic sense to manufacture and export from the US. Until then, we are still living off our maxed-out credit cards. We may feel good about our latest purchase (government funded jobs), but we are still putting it all on the plastic and marching to bankruptcy.
"A thousand swing at the branches for one who strikes the root."
I would imagine by 2015 we might be seeing some signs of recovery but that is being very hopeful. Most likely, this is going to take a full decade just to get out of recession and then we will see some real growth. I wouldn't expect real unemployment to fall below 10% until at least 2020. Economic prosperity will return, it will just be a long, long, long while. This happened in the 1870s and again in the 1930s. If it wasn't for WWII the 1930s depression probably would have lingered until at least 1950. Severe depressions are a natural part of the economic cycle. I just hate being part of the generation that is going to suffer the most from it.
This is just a natural part of capitalism.
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