– “The Fed Has Been Horribly Wrong” Deutsche Bank Admits, Dares To Ask If Yellen Is Planning A Housing Market Crash (ZeroHedge, May 31, 2015):
When the “very serious people” start to admit that the entire house of cards was held together with nothing but bullshit and propaganda, it may be a time to panic…
This paragraph describes the situation clearly:
consumer demand is decidedly weaker than it was pre crisis. As we highlighted last weak using log real retail sales we can observe a distinct weakening in the post crisis trend, especially in the past couple of years that’s worth almost up to 1 percent. Taking a broader look at consumption, the weakness however is even more protracted in housing services and especially in owner occupied housing. The latter is particularly important because it is the germ of demand for other consumption. Owners typically will furnish their home, buy more “stuff”, maintain the property through other services more aggressively etc. than say tenants. The “multiplier” effects of home ownership are almost certainly stronger than for tenant homes, controlling for age etc. It is therefore concerning that while household formation may be rising, homeownerships rates are still falling.
What the article does not discuss is the fact greedy gut investors are buying up abandoned or foreclosed homes in huge lots……paying cash, and driving up the prices so that individual buyers cannot afford to compete. Then, after buying up these homes and renting them out, they are trading them as securities on Wall Street…….using the rent payments as return on investment.
This ought to be illegal, in a credible or honest country, it would be……this is one more outrage by greedy guts, and they get away with it…….The rigged market is kept artificially high to benefit the few at the cost of the rest of us.
Houses used to be one part of anyone’s life if they had a job…….homes were priced by a real housing market, and financed by the local banks. Today, the banks finance nothing, they simply process loans of all kinds, then sell them as securities on Wall Street. Auto loans, mortgage payments, credit card debt……you name it, if they cannot trade it on Wall Street, they won’t finance it.
The entire world has changed…….and not for the better.
I don’t know how long they can keep this scam going…….I don’t see how they have kept it going this long………….
The trade bill will be approved by the house this week, Obama will get his fast track, and 40% more jobs will be put at risk. There is much more, all working against the recovery of the US economy……and these savages will pass them all.
I am disgusted and out of words.