Show Me the Money...
...Brought to you today by the guys over at There Goes The Neighborhood
Great Analysis: (from Keith)
"Folks in the States, I've got some bad news. Our economy which has seemed so swell the past couple of years - it's an illusion, a false panacea. The housing ATM blinded us to the reality - our jobs are gone, especially in the manufacturing sector and rustbelt.
We've made our money the past few years selling each other our houses, in the greatest Ponzi scheme in human history, and taking money out of our houses that in the end, didn't exist yet must be repaid nonetheless. The illusion is now over, with falling home prices and exploding inventory. And the jobs are gone, gone for good. Not including the over 1 Million about to go away with the housing crash.
Given the well-documented slowdown in home price appreciation lately as well as in new and existing home sales, it is difficult to imagine an economy that can sustain robust growth without that continued stimulus and it is hard to overestimate the ramifications of this deceleration.
There are so many industries on the periphery of the housing market, from real estate and mortgage brokers to the construction industry and commodities, that the layoffs already being seen in the mortgage lending industry are likely to increase throughout the housing-related sector."