What most "experts" fail to mention,is that the first home buyers have been priced out of the market.If you dont have that constant stream of buyers coming in at the bottom of the pyramid..opps I mean market,then it cant keep moving higher.
With the advent of cheap credit and 100% loans (110% in some cases) anybody was able to get in,unfortunately they are now trapped with houses they cant afford,most with negative equity and rising mortgage costs.
Once upon a time you would have to save about $20 to $30k as a deposit on a house worth about $130k to get a loan from the bank.
You needed to have a good saving and credit history,plus wear your best suit and go cap in hand to the bank manager and then maybe after much deliberation they would say Yes.
But now the cheapest houses start at about $250k,meaning you now need to save about $50k as a deposit and most first home buyers just cant possibly save that amount of money...
This will unravel very quickly from here....pessimism spreads fast,these stories freak people out...you will start to hear people condemning those who are talking down the markets,that will be the signal that we are close to collapse...have a shrillness meter for the commentators employed by the real estate industry...
Bris Don't forget that Sataniclly inspired Ponzi scheme ;inspired by do-gooders wanting RE for the homeless who joined hands with the RE Bandittii in a pro--Ponzi-gram called the Nehemia schream---(I'm becoming infected with Bareitis)
Nehemia subsidzed by RE Devolpers gave $$$ to Nehemia organization, who in turn provided the DP to the RE insurgents, who then were financed by the Potato Head's magic through the Fannymatic MaydayMayDay corporation -- all of them bones connected by the lord
Gee, that's sorta, well, unbalanced, yah? Not, of course, that there's anything wrong with that... The Man from Woebegon's on FIRE! Wonder if he still does a radio show- used to catch it occasionally on public radio years ago; IIRC, it was studiously non-political apart from a bit of mild teasing & satire. If so, whether he testifies the same way over the air...
Yep, sure does. Its on every Saturday at 6:00 pm here (mountain time), but quite a few repeats over the summer.
Wilson found some of the greatest written use of the idolizing of Elizabeth in the prayers that grant her the status of not only the head of the church, but also of the second maid in heaven He partially excuses the extreme glorification by believing that "patriotic Englishmen unconsciously half shifted their affection for a sacred Virgin to profane." The picture of Elizabeth as God's handmaiden on earth, who was venerated as such during her reign is aided by Wilson's mention of her use of the royal healing touch, a miracle which also aided the public to view her in the light of extreme holiness.
If you look at a chart of the "Cubes" you will see the Holy Mother of Head and Shoulder tops, the Cubes have clawed their way back to the neck-line which is usually the good bye KISS before falling down the mine shaft!
By Mark Cotton, CBS.MarketWatch.com Last Update: 6:26 PM ET Sept. 6, 2004
NEW YORK (CBS.MW) -- U.S. stocks are expected to post gains this week as traders return to their desks after the Labor Day holiday to await testimony from Fed Chairman Alan Greenspan and the latest reading on wholesale inflation.
"Volume will pick up ...," said Al Goldman, chief market strategist at A.G. Edwards. "We've had several days of rest, we've got some worrisome things behind us, and now there should be a bias to the upside."
According to the Stock Trader's Almanac, the first session after Labor Day has opened strong in seven of the last nine years.
Any pickup in volume will be welcomed by investors after one of the lightest trading weeks of the year on Wall Street. . . . Greenspan back on Capitol Hill
Investors will get a fresh snapshot on the current state of the economy when Federal Reserve Chairman Alan Greenspan testifies on the economic and budget outlook to the House Budget Committee on Wednesday.
Greenspan is likely to acknowledge that the transitory soft spot in the economy may be longer lasting than initially assumed, Ethan Harris, chief U.S. economist at Lehman Brothers, noted in his preview of the week ahead.
Nevertheless, "we do not expect him to hint that the Fed is prepared to halt its interest rate hikes," said Harris. "Instead, we reckon he will discuss the risks to long-term sustainable growth from higher inflation and the need to prevent monetary policy from becoming overly accommodative."
In case anybody missed it, the hands-down best 9/11 timeline is here...available in printable form and easily saved to amaze friends and influence the stupid and ignorant...mainstream media links included--not the all-to-common hallucinatory extrapolations...
This is market related simply becase if the full extent of the implications are realized, the market will take one heck of a wallop...
So far Futures are comfortably above fair value but they are eroding a while back they were stratospheric.
They got stratospheric as a result of last night's 3:00 a.m. jam job. While all other US markets that I know of were closed today, the e-mini spoos and nazcrap were open. As shocking and difficult to believe as this may seem, right around 3:00 a.m. last night, after being completely flat and dead out of the open, they shot straight northbound.
It's not surprising they've come down somewhat since then. The only problem is that we get another 3:00 a.m. reading on the clock before all the main "markets" open for the week. I can't help but wonder if another jam job is not in the cards. I mean, it's a "two for one" opportunity for the Matrix, an opportunity that comes along only a few times a year, and I can't see them wanting to pass it up.
I really hope they do jam it tonight. When things really start falling apart, the Matrix will require more of these two-for-one opportunities in order to perform its mission for the Plutocrats. This will result in a much needed break for 'Merkuhn workers -- more Monday holidays. At least it will be a break for the few 'Merkuhns left who still have fulltime jobs.
You know it's a slow day when Thread and Beardrech engage in a dissertation on Elizabeth the Virgin Queen and do so in full view of a group whose only exposure to the Arts is wondering who is working the pole at the Boom, Boom Room!
BO, I haven't been following the NL pension story closely, but was wondering if this isn't recognition that early retirement is on the way out, and 65+ is going to be more the norm. If, as you suggest, 30% take out the cash-out option, I wonder how many would actually save enough on their own to still be able to take early retirement. And what about the solidarity contribution - I take it the older workers would simply lose out on the opportunity to retire earlier.
For all the talk of giving people autonomy over their pension options, to me it seems more like the beginning of a trend back towards higher retirement ages. After all, the working population has so many financial pressures from all those who are not working, whether it be early retirement or disability driven, it's a miracle to me that the system is still functioning at all.
I think the idea is that early retirement has just been cancelled.The system cannot afford it.It is possible for the top guys but that's because when they were headhunted by their present company 10 years ago their company had to buy off the pension arrangement with the previous company for millions--otherwise the guy stayed put.
For the ordinary Joe I would suspect that the gubmint wants to keep him working because of his tax contribution to the Treasury.When he retires, so do many of his contributions to things like un-employmnt benefit and disability insurance.And he's at the top of his salary scale--ie more tax than a 20year-old!
Sooner or later I expect the 36 hour week to be abandoned and return to 38-40 hrs/week.Demographics for the West are all shot for the future.No young "arbeidslustige" immigrants,birth rate below death rate in the indigenous population--what's gubmint to do?