Items of Interest:
The Housing Abyss -- Why the worst may be yet to come as forces battering the market gain strength. And the remedy coming from Congress? It's likely to fall short of the mark. The housing crisis is entering a new and frightening stage. On June 24, Standard & Poor's announced that the S&P/Case-Shiller 20-City Home Price Index had fallen more than 15% in April from a year earlier. Adjusted for inflation, the decline is the biggest since 1940-42, according to data collected by Yale University economist Robert Shiller. The risk for the financial system and the economy is that the price drop, already horrifying, will start feeding on itself. When home values fall low enough, hard-pressed homeowners become less able or less willing to keep paying their mortgages. That forces lenders to repossess homes and then dump them back on the market at fire-sale prices, which depresses prices further and leads to even more foreclosures...
As Housing Bill Evolves, Crisis Grows Deeper -- When Congress started fashioning a sweeping rescue package for struggling homeowners earlier this year, 2.6 million loans were in trouble. But the problem has grown considerably in just six months and is continuing to worsen.
More than three million borrowers are in distress, and analysts are forecasting a couple of million more will fall behind on their payments in the coming year as home prices fall further and the economy weakens...
Representative Barney Frank, Democrat of Massachusetts and a central force behind the legislation, said on Friday that recent reports about falling home prices have rallied support for the plan. But he acknowledged that the plan may not do enough to help homeowners or the housing market. Mr. Frank, chairman of the House Financial Services Committee, said that even after a bill like this, “you may need more.” ...
The Big Picture:
Should Congress Let Home Prices Fall? -- What I find astonishing is that Congress somehow believes they need to do something to help prop up housing prices. When it comes to free markets, the quadrennial Socialists in Washington talk a good game, but push comes to shove, they don't really believe it.
Its the same with half of the "Free-market" pundits on T.V. As long as things are going well, they want no supervision, no regulation, no interference with markets. As soon as the going gets tough, they come crawling to mummy and daddy for a bailout, begging for all sorts of FOMC and government intervention. Hypocrite is too soft a word for this ilk...
Anxious in America -- My fellow Americans: We are a country in debt and in decline — not terminal, not irreversible, but in decline. Our political system seems incapable of producing long-range answers to big problems or big opportunities. We are the ones who need a better-functioning democracy — more than the Iraqis and Afghans. We are the ones in need of nation-building. It is our political system that is not working.
As Gas Prices Rise, Teenagers’ Cruising Declines -- For car-loving American teenagers, this is turning out to be the summer the cruising died.
Kevin Ballschmiede, 16, pined for his 1999 Dodge Ram — “my pride and joy” — the other night as he hung out in a parking lot in this town outside Chicago. Given that filling the 26-gallon tank can now cost more than $100, he had left it at home and caught a ride.
From coast to coast, American teenagers appear to be driving less this summer. Police officers who keep watch on weekend cruising zones say fewer youths are spending their time driving around in circles, with more of them hanging out in parking lots, malls or movie theaters...
- U.S. Housing Market Forecast: 2008-2010 -
- You Can’t Sell Anything Right Now In California - Housing Bubble blog
- Financials Still In Eye of Subprime Storm - Seeking Alpha
- Real Estate's Next Victim - Prashant Gopal, Business Week
- There Is No 'The U.S. Economy' - Zachary Karabell, Wall Street Journal
- Who Is Right: Professionals or the Populace? - Big Picture
- The Collapse: Bringing Down Bear Stearns - Bryan Burrough, Vanity Fair
- And the credit crunch rolls on - Mortgage Insider
- Here's a beaten-down mortgage broker in Las Vegas that'll walk you through the Countrywide-led Late Great Mortgage Ponzi Scheme - HousingPanic