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Housing Market Rebound Fails To Charge Economy

By Bubbabear   Follow   Thu, 24 Jan 2013, 8:38pm   771 views   20 comments
In Yorba Linda CA 92886   Watch (0)   Share   Quote   Permalink   Like (1)   Dislike  

The U.S. housing market is on the mend, but the so-called "missing piston" of the world's biggest economy doesn't have enough power to get the broader recovery firing on all cylinders any time soon.

http://m.nbcnews.com/business/economywatch/housing-market-rebound-fails-recharge-economy-1C6859650

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1. David9 Follow Befriend (3) 28 threads 747 comments Tarzana, CA

   1   8:49pm Thu 24 Jan 2013   Share   Quote   Permalink   Like   Dislike   Really ? omg.

2. Raw Follow Befriend 10 threads 694 comments

   2   9:11pm Thu 24 Jan 2013   Share   Quote   Permalink   Like   Dislike   First it was real estate prices still had another 65% to crash. Then real estate was not recovering. Now real estate was in another bubble. 2 years from now when prices take a 10% pullback after going up 100%, they will say "See? I told you" Is there anyone not living in a World of Wacky?

3. JodyChunder Follow Befriend (3) 16 threads 1,371 comments Victorville, CA Premium

   3   9:55pm Thu 24 Jan 2013   Share   Quote   Permalink   Like   Dislike   Protected   Raw says Is there anyone not living in a World of Wacky? But it's a wacky world -- and wacky is being G-rated about it.

4. Bubbabear Follow Befriend (9) 236 threads 337 comments Yorba Linda, CA

   4   7:58am Fri 25 Jan 2013   Share   Quote   Permalink   Like   Dislike   JodyChunder says Raw says Is there anyone not living in a World of Wacky? But it's a wacky world -- and wacky is being G-rated about it. What's going to be even more Wacky will be our rude awakening: The IMF cuts global growth and finally admits to the EU recession existing. Also the EU recession is a good test to see if their central bank can spur growth with its old tricks. If they can't, then the fed reserve will be in the same kind of difficult situation. http://www.zerohedge.com/news/2013-01-23/imf-cuts-global-growth-sees-2013-european-recession

5. Mobi Follow Befriend 1 threads 241 comments

   5   8:35am Fri 25 Jan 2013   Share   Quote   Permalink   Like   Dislike   Base on the Japan's experiences, I think we will muddle through for the next 5-10 years bearing a Europe collapse. So, there will always be mixed economical news. I hope they do not pump the housing price too fast this time tho.

6. Mick Russom Follow Befriend (2) 7 threads 530 comments Belmont, CA

   6   9:01am Fri 25 Jan 2013   Share   Quote   Permalink   Like (2)   Dislike   The chinese buying real estate isnt going to help the USSA. Neither is the oligarchs buying houses in bulk. The middle class is underwater and wages are stagnant and U6 is 15%.

7. Homeboy Follow Befriend 13 threads 1,483 comments

   7   11:53am Fri 25 Jan 2013   Share   Quote   Permalink   Like (4)   Dislike (1)   I wonder what it would take for people to realize that trading houses back and forth, or securities, or tulips, or whatever, does not make a healthy economy. America used to produce things that had value.

8. Nobody Follow Befriend 10 threads 274 comments San Jose, CA

   8   11:57am Fri 25 Jan 2013   Share   Quote   Permalink   Like   Dislike   The housing market is turning around, because of the investment from China. Not definitely because the economy has turned around with inflation. So there will be more money for rich to hoard to increase the price of everyday necessities. Either way I see it, the middle class is screwed. I bet you Wong will make a comment in defense of Chinese investors.

9. inflection point Follow Befriend 4 threads 266 comments Fremont, CA

   9   12:18pm Fri 25 Jan 2013   Share   Quote   Permalink   Like (1)   Dislike   You cannot blame the Chinese (or anyone else) for trying to turn their dollars (whose value continues to decrease because of the FEDS expansion) to something physcial.

10. David Losh Follow Befriend (2) 8 threads 1,126 comments Seattle, WA David Losh's website Premium

    10   5:58pm Sun 27 Jan 2013   Share   Quote   Permalink   Like (1)   Dislike   Protected   Mobi says Base on the Japan's experiences, I think we will muddle through for the next 5-10 years I'm tired of hearing about Japan, and ZIRP. Japan, like Germany, is a confined homogeneous society, they were able to do what they want. They are huge economies, but focussed, and directed, a lot by government control. We'll need something more, because our economy is constantly changing. We have societal diversification that creates demand. We have options that Japan, or Germany, don't have. I personally don't see where we need a housing recovery. We have tons of housing units, and the ability to add millions more at a moments notice. I don't see adding supply at this point being an advatage, but I don't see any reason for scarcity. We should move on, and let the housing market flounder along the way it always used to before 1998.

11. Mick Russom Follow Befriend (2) 7 threads 530 comments Belmont, CA

    11   7:05pm Sun 27 Jan 2013   Share   Quote   Permalink   Like (1)   Dislike   David Losh says I personally don't see where we need a housing recovery. If we have a housing "recovery", the middle class is finished.

12. mell Follow Befriend (5) 55 threads 1,309 comments Premium

    12   7:08pm Sun 27 Jan 2013   Share   Quote   Permalink   Like   Dislike   Protected   Mick Russom says David Losh says I personally don't see where we need a housing recovery. If we have a housing "recovery", the middle class is finished. Bingo - all that housing inflation does is shifting the multiplier of avg. yearly salary to house price upwards to even more unsustainable levels again. Here in the bay area 5-10 x is fairly normal.

13. Raw Follow Befriend 10 threads 694 comments

    13   7:29pm Sun 27 Jan 2013   Share   Quote   Permalink   Like   Dislike   mell says Mick Russom says David Losh says I personally don't see where we need a housing recovery. If we have a housing "recovery", the middle class is finished. Bingo - all that housing inflation does is shifting the multiplier of avg. yearly salary to house price upwards to even more unsustainable levels again. Here in the bay area 5-10 x is fairly normal. You get what you pay for. If you go to Nebraska, a teenager working for Taco Bell can buy a 5 bedroom home with a swimming pool. But then, who wants to live where no one wants to live?

14. mell Follow Befriend (5) 55 threads 1,309 comments Premium

    14   7:32pm Sun 27 Jan 2013   Share   Quote   Permalink   Like   Dislike   Protected   Raw says mell says Mick Russom says David Losh says I personally don't see where we need a housing recovery. If we have a housing "recovery", the middle class is finished. Bingo - all that housing inflation does is shifting the multiplier of avg. yearly salary to house price upwards to even more unsustainable levels again. Here in the bay area 5-10 x is fairly normal. You get what you pay for. If you go to Nebraska, a teenager working for Taco Bell can buy a 5 bedroom home with a swimming pool. But then, who wants to live where no one wants to live? Sure, but that's what salary adjustments are for. The salaries in the bay area are much higher than in Nebraska I would bet, but not high enough to keep the multiplier somewhere around 2-5x, where it should be. I bet in Nebraska it is closer to that (though I don't know).

15. iwog Follow Befriend (48) 274 threads 12,534 comments 47 male Lafayette, CA Premium

    15   7:42pm Sun 27 Jan 2013   Share   Quote   Permalink   Like (1)   Dislike   Protected   It's going to take a few years to ramp up construction jobs but they are coming. So far we have one single bull market year, and even if subdivisions were planned in 2012, they aren't ready to build yet.

16. Bubbabear Follow Befriend (9) 236 threads 337 comments Yorba Linda, CA

    16   6:57am Mon 28 Jan 2013   Share   Quote   Permalink   Like   Dislike   chanakya4773 says unemployment won't keep falling ...and the employment participation will keep falling http://data.bls.gov/timeseries/LNS11300000

17. david1 Follow Befriend (2) 8 threads 755 comments 33 male Fort Mill, SC

    17   7:19am Mon 28 Jan 2013   Share   Quote   Permalink   Like   Dislike   Billybigrig says chanakya4773 says unemployment won't keep falling ...and the employment participation will keep falling http://data.bls.gov/timeseries/LNS11300000 Move that graph out a bit more and you will see the LT trend....like back to 1970 when the baby boom entered the work force.. And now they are coming out of it...

18. Bubbabear Follow Befriend (9) 236 threads 337 comments Yorba Linda, CA

    18   8:23am Mon 28 Jan 2013   Share   Quote   Permalink   Like   Dislike   david1 says Billybigrig says chanakya4773 says unemployment won't keep falling ...and the employment participation will keep falling http://data.bls.gov/timeseries/LNS11300000 Move that graph out a bit more and you will see the LT trend....like back to 1970 when the baby boom entered the work force.. And now they are coming out of it... Talk is cheap ! Show me the money...

19. FortWayne Follow Befriend (13) 102 threads 3,763 comments

    19   8:26am Mon 28 Jan 2013   Share   Quote   Permalink   Like   Dislike   Housing based economy wasn't real, so it does make sense that recovery in housing (whatever it means) won't really fix all the economic ills, which were often ignored during the bubble years.

20. David Losh Follow Befriend (2) 8 threads 1,126 comments Seattle, WA David Losh's website Premium

    20   9:07am Mon 28 Jan 2013   Share   Quote   Permalink   Like   Dislike   Protected   iwog says It's going to take a few years to ramp up construction jobs but they are coming. Construction money moved into rental units, both vertical, and complex. It just makes sense that people will rent to deleverage from the mounting mortgage debt that is clogging the system. Even if we do build more housing units to add to the glut of housing units already built between 1998 to 2008 it will be at a cost of construction price point. I just don't see where construction of more crap shacks will do anything for the price of housing other than make new construction like buying a car; once you live in it it will lose half it's value.