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Economy
Summer of Wreckovery II - Housing crisis worse than Great Depression
2011-06-14
It's official: The housing crisis that began in 2006 and has recently entered a double dip is now worse than the Great Depression.
And all that extra debt to prop up the housing market did diddly-squat.
Prices have fallen some 33 percent since the market began its collapse, greater than the 31 percent fall that began in the late 1920s and culminated in the early 1930s, according to Case-Shiller data.

The news comes as the Federal Reserve considers whether the economy has regained enough strength to stand on its own and as unemployment remains at a still-elevated 9.1 percent, throwing into question whether the recovery is real.

"The sharp fall in house prices in the first quarter provided further confirmation that this housing crash has been larger and faster than the one during the Great Depression," Paul Dales, senior economist at Capital Economics in Toronto, wrote in research for clients.
Can we officially call this a depression now?
Posted by:DarthVader

#5  Prices need to come down another 50% before I enter the market. If not even more than that. All that extra debt to prop up the housing market did accomplish one thing - keeping the price of housing UNAFFORDABLE, although just a tad lower than it was in 2007.
The Fed has 2 mandates: one is to keep prices stable. Stable IMHO means constant, not inflating at all. Since the Fed was instituted in 1913, the dollar has lost about 97% of its value. The other mandate is 'maximum employment.' This is where the politicians can get creative, just declare 9.1% unemployment is as good as we can get, and declare victory over unemployment.
Posted by: Anguper Hupomosing9418   2011-06-14 22:59  

#4  I would love to own a house, but hell if I could afford one. Prices need to come down another 50% before I enter the market.
Posted by: Scooter McGruder   2011-06-14 20:49  

#3  This is far from over. Foreclosuregate, MERS, and un-backed mortgage backed securities have yet to make a full impression on our financial institutions' financial statements. And I'm doubting there will be the votes for another bailout.
Posted by: Nimble Spemble   2011-06-14 20:19  

#2  ... but was stoked by Fannie and Freddie and Barney and Chris. And by low interest rates so that no sacrifice was demanded while fighting two wars, since most of the Dems made it clear they put political sabotage over statesmanship and most of the Reps were spineless.
Posted by: lotp   2011-06-14 20:01  

#1  The credit bubble that caused it grew during Bush's era...
Posted by: Bright Pebbles   2011-06-14 19:54  

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