I wonder why Bush has stopped bragging about the “unprecedented growth in home ownership” under his administration?
The slumping housing market has become the biggest worry for the stock market, which just four days ago set records, because of its potential impact on the broader economy and financial system.
Countrywide’s stark assessment signaled a critical change in the substance and tenor of how housing executives are publicly describing the market. Just a couple of months ago, some executives were predicting a relatively quick recovery and saying that most home loans would be fine with the exception of those made to borrowers with weak credit who stretched too far financially.
Executives at Countrywide had for some time been more skeptical than others but the bluntness of their comments yesterday surprised many on Wall Street. In a conference call with analysts that lasted three hours, Countrywide’s chairman and chief executive, Angelo R. Mozilo, said home prices were falling “almost like never before, with the exception of the Great Depression.”
[...] Bond ratings agencies have begun to downgrade and re-evaluate mortgage securities, which has virtually shut down the market for certain debt offerings that specialize in home loans. That, in turn, has made it harder for some private equity firms to finance buyouts.
Yet another example of how a bunch of dirty hippies sitting at home with their computers saw this coming down the road years ago, and yet the Very Important People who tell us how our nation is doing, didn’t.
Perhaps greed is not quite as good as they’ve led us to believe. Perhaps Alan Greenspan is not a god.
Two and a half years ago, after watching for two years, I finally said we have to get out now. A house we’d bought in 2000 for $240K, we sold for $360K. We paid off all our debts, bought the Suburban and trailer free and clear, and had a enough left over in the bank for a few months. Granted, that money ran out before we could find work, but we still have the trailer and tow vehicle.
House prices started to fall the week after we sold. I suspect if we’d waited, we wouldn’t even have what we now have and would be out on the street.