RE and economic charts: Case-Shiller: Second Leg Down in Housing Prices Underway

[mEDITate-OR:
assume that Dirk@Zack is the last word on our current RE status...
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Dirk provides U.S. with a very detailed analysis of most economic issues - many in SeekingAlpha, and all on his Zacks blog.
What he usually does is choose Bill's@CR charts to explain his point. This is what appears below. These are not all of Bill@CR's charts, but they DO show U.S. some significant facts & views.
The article below is a MUST read.
You may compare my thoughts/comments with it.
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This 1st chart is VERY different than those you mostly will see.
Shows U.S. where and how deep we are underwater.
Dirk's middle chart is also stunning.
By year it shows U.S. how much we have fallen.
And is shows where we still are and now are not falling.
All of U.S. are NOT equal.
And, many are moving in very different directions.
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JGBHimself
Feb 22 08:21 PM
Zack, while some like Sold Out and Bill@CR, produce systematically better charts, you do provide a very good and in depth analysis of some of what they and we see. However, you, too, miss some things.

First, you see what many want to see in the Home Buyer tax credit.

Said you: To the extent it rewarded people for doing what they would have done anyway, it did nothing to stimulate the economy.

What too many try to forget is July 08. When China stopped buying FMae&FMac bonds & securities; W nationalize F&F; and there were NO funds for any new OR existing home sales, at any price, anywhere.

Had W not "guaranteed" - did the fools in Ireland do it bcuz he did - China's F&F investments, and then transfer their foreign trade surplus dollars investment in TBills back into F&F securities, there were and would have been NO funds for RE sales, or refi's.

What the Buyers Tax Credit DID do was make it possible for any and all of U.S. to sell our existing homes, and to buy a new/existing home where we could find another job.

You think that ALL that did was move buyers forward. Well, yes, forward with their lives. NOT forward in buying what they would have bought anyway. They COULD NOT have bought anything, at that time without it. Wrong question; wrong answer; you failed the test.

Some have "asked" for NO assistance to be given to the RE markets - to let it free fall to whatever depth it will.

Eliminate FMae&FMac & FHA & VA!!!

They are assuming that the Big, Bad, Bailed Out - originating, servicing, financing - Banks WILL make some, let alone more, RE loans. They are NOT doing it now. What in Gawd's name supports your belief that they will - any time, soon, in the future.

They have NOT make any significant "modifications", bcuz they have NOT written off all their losses. They cannot. Unless they admit they are, technically, bankrupt.

And, what if they make no more RE loans than small business loans?

What IF all home sales and RE loans stop?

They did in July 08..., what makes you think for a NY Bankster minute that they will not now?

Will foreclosures stop? Will bankruptcies stop? Will job creations start? Will the RE bank's "hidden inventory" suddenly disappear?

Dirk, you are still living in a world that does not exist - There is even more of a Faux RE market than there is Faux News.

So, said Robert de Nero to U.S: "Analyze this", or was it "That"?

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Forgive the clarification - tis not that the BBBoutBks do not now make ANY loans.

What they ARE doing - through their "Countrywide, WAMU and Wichovia" purchases - is originating RE loans that they re-sell to FMae&FMac&FHA&... What they are NOT doing is using their own funds to originate and hold on to RE loans.

Let me be frank with you - oh, we know, we always get to be Frank - RE funding for ALL "sales" of existing and new homes and almost all refi's are dependent upon FMae-FMac-FHA-VA!

There are NO alternatives available, currently

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