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[Purveyor]

This message was self-deleted by its author (Purveyor) on Fri Mar 18, 2016, 11:37 PM. When the original post in a discussion thread is self-deleted, the entire discussion thread is automatically locked so new replies cannot be posted.

[litlbilly]

1. People are forced to use credit to just keep above water. It cant be sustained. At some point the

bill comes due. People don't have real money to buys things so they have to use credit. This type of economy has never worked and it will be even worse this time since I believe the crash that's coming will make 08 look like a picnic.

[Purveyor]

2. Also see: Americans' Home Wealth Recovers $7 Trillion as Prices Firm

March 10, 2016 — 8:00 AM EST
Updated on March 10, 2016 — 12:45 PM EST

Record home values from Charlotte to Dallas to San Francisco
Recovery helps offset stock market losses, aids consumers

In March 2014, Steven and Bernadette Doherty paid $183,000 for a two-bedroom home in Charlotte, North Carolina, $6,000 more than its appraised value. Today, similar houses in the neighborhood are being priced at $300,000 or more.

“We bought at the right time,” said Bernadette, a retired Wells Fargo & Co. information technology worker. “In retrospect, we were lucky as prices have gone up so much more.”

Home-price appreciation is a welcome development for households whose nest eggs were shattered by the residential real-estate bust that began a decade ago.

The 2006-2009 housing slump reduced wealth by $7 trillion. Since then, the value of homeowners’ equity in real estate has more than doubled from a low in the first quarter of 2009, a Federal Reserve report today showed. What’s more, housing wealth is poised to reach a new record as early as the second quarter, say economists at the Federal Reserve Bank of St. Louis and Pantheon Macroeconomics Ltd.

Improving property values are allowing homeowners to shake off recent stock-market volatility and keep spending. From the end of 2013 through last year’s fourth quarter, home equity climbed 22 percent compared with a 11 percent gain in the Standard & Poor’s 500 Index. The stock index has declined 3 percent this year.

more...

http://www.bloomberg.com/news/articles/2016-03-10/americans-housing-wealth-recovers-7-trillion-as-prices-firm

[litlbilly]

4. the problem is most of the new housing value is as bogus as it was in 07. It is rising too fast and

the underlying support is not really there.

[MisterP]

9. heck, it's been 9 years already--more than enough time for the cycle

the 1979-82 gigacrash, then cheap oil, then 1987 and the S&Ls, then IT, then the dotcom bust

[litlbilly]

11. exactly, and now with china not selling stuff, because we dont have money to buy it, it is ripe for

another crash. I feel it wont be as nice as 08. Hope people are prepared for this one.

[Elmer S. E. Dump]

15. I wish I could prepare - I'm 61 and can't survive much more

My stinking excuse for a pension is a company matched 401K - so if the stock market crashes, I get to work until I drop dead at my desk.

[litlbilly]

16. same here, i turn 62 in july.

[Wilms]

14. Excellent post, Sir.

[azurnoir]

6. maybe my memories faulty but I seem to remember seeing stuff like this

the combo of huge and rising credit card debt alongside artificially inflated realestate prices starting around 2006 ya know just before........

[Purveyor]

8. Indeed. I was documenting the pending great recession on this

very forum.

Living in Michigan, the first real warning signs started around 2005.

[Skwmom]

3. Well, at least the 1% and the families and friends of DC politicians won't have to worry.

They have the best insurance policy money can buy.

[litlbilly]

5. actually, they should be worried, they just cant see past their own noses.

[litlbilly]

12. If any of you havent seen the Big Short yet, watch it. it's the same thing only now the CDO's

are filled with student debt along with bad mortgages, they assumed since you cant erase student debt with bankruptcy, (thnks Hillary) those bonds which are rated AAA because they are supposedly safe, they are gonna crash just as hard. If you try and do a refi and the bank is anxious to do it, be very wary. It means they are trying to lock in good debt before the bad stuff hits the floor. And, I would guess, they are shorting everything to cover their asses when it hits the fan.

[dembotoz]

7. been paying it down and then the washer died....damn

[litlbilly]

13. hate when that happens. My wife and I took over 7 years just to get cc debt below 30%. Now just

hoping we don't need anything big and fuck that up

[Abouttime]

10. Just restructure the debt, the $$$ are sitting there

Use the boomers unpaid taxes on their 401k savings to pay for student loan and credit card debt forgiveness.