Does everybody understand the connection between The Real Estate Market and the Recession?
by Mortgage Rates on Wednesday, September 22nd, 2010 | 6 Comments
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Hehe, an indirect call out for me?
Edit:
You gotta be jokin?, obviously retailing contributes to it, that market is huge, it contributes to the cost of living anyway, even without a recession. Do you not find it a bit of a coincidence that during the most expensive war in modern times we get a global crisis… The biggest since The Great Depression. Many economic advisers predicted a recession during The Iraq/Afghan war and we got one. So we shouldn’t have been suprised, things like that cost an unheard of amount to run. Don’t buy into the media coverage too much seriously. You really think they’re going to heap the blame on themselves, when the unknowing public are in full view begging to find out the cause…
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Ah look you’re making me get sidetracked from my point, thanks Zumaria for reminding me…
I don’t know Superior Intellect,sounds like you went off on a little rant,rightfully so in my book,do you feel better?
Yes, I am aware of why this is happening. However, I know why you are asking this. Talawah just asked a question about the Brazilian president’s comments, and blaming it on majority white bankers. The point is that even if some Americans overextended themselves on credit, the WHOLE WORLD is now affected, and they are not guilty of this, especially in poor nations, and in the end, they are going to pay for it the most, and have to deal with it the longest.
Already new that. Greedy mortgage companies plus unqualified buyers equal a burst housing bubble. The wars did not cause this that is true. Good job.
Edit: Apparently this was a subliminal towards someone? I have nothing to do with that. Just agreeing with the facts.
Yeah I know, this whole housing bubble, that I believe started in ’02, is the cause of this. I think we should blame banks that handed out loans to ppl, and made them pay back mortgages they know that they couldn’t afford. Banks should do more background checks on stuff like this.. But hell, this recession (which has been going on since like Nov. or December of ’07), is sort of a good thing. It now allows for us to see how we can’t survive on building up debt, and relying on consumer spending (which is 2/3 of our entire economy). But Citigroup and Bank of America actually made a profit in the first few months of the year, and with the treasuries decision to use almost $1 trillion to buy up toxic assets and help clear major bank’s balance sheets…lending should start again.
The auto industry is another hassle. I’m sure GM and Chrysler have learned their lessons now. They can’t think that oil will be cheap forever. They need to build more fuel efficient cars, and I can’t wait for the Chevy Volt to come out, I think it’ll be available late this year or possibly next. Now Ford took out a line of credit b4 this mess, so Ford should be okay unless GM & Chrysler collapse, or the economy goes further down south. Ford actually will have a competitive edge over the other automakers…It isn’t using taxpayer money, has a CEO who actually thinks about the company and not himself, and they plan on launching more fuel-efficient cars. Did you know that the 2010 Ford Fusion Hybrid gets more mpg than the Toyota Camry?? I think the auto industry will emerge stronger now, and won’t go down that road again..but then again I don’t think companies last forever..and maybe they may have another huge obstacle in another 70 years. GM was actually going to become a profitable company by 2010 b4 all this mess. It was planning on lowering it’s wages for it’s workers down to what foreign automakers pay, and making more fuel efficient vehicles. Then of course the financial crisis happened…and all of this unraveled. Here’s an article about what GM may have to do in order to become profitable and restructure: http://www.businessweek.com/magazine/content/09_14/b4125072696638.htm?chan=top+news_top+news+index+-+temp_news+%2B+analysis
And one on when some guy (forgot who he is) thinks the recession will end:
http://news.yahoo.com/s/nm/20090326/bs_nm/us_usa_fed_stern;_ylt=As3bZMWhRRRX.Spm0ALsPYnv5rEF
Plus one about the stock market. The Dow closed at a six week high. The turn around may be sooner than we think: http://finance.yahoo.com/news/Dow-hits-6week-high-on-relief-apf-14760349.html
This was entirely predictable, the growth of our economy (the world economy) was based upon credit. Eventually credit gets maxed out.
Yes the “housing bubble” popping caused this current depression. Those telling you this depression is going to be over soon are just trying to inflate their investments so they can divest at a greater margin.
Also don’t buy into the hype that poor people who should have not got loans caused the depression. The real cause was real estate speculators who invested in land with ARM loans, hoping to sell the land quickly before their loans interest rates readjusted.
Free Market Capitalism is a flawed system because it assumes greedy people will act responsibly.