L.A. Land : Los Angeles Times : Disappearing now: $6 trillion in housing wealth
source: http://latimesblogs.latimes.com/laland/2008/04/disappearing-no.html
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- Conniepae
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Washington think tank is warning that housing prices are falling at an accelerating level, destroying wealth at a pace that will cost the average homeowner $85,000 in lost wealth this year alone.
The projections by the Center for Economic and Policy Research are based on the numbers in Tuesday's Case-Shiller home price index, which showed accelerating price declines in most big cities.
The annual rate of price decline over the last quarter was 24.9% in the 20-city index and 25.8% in the 10-city index," the center said in its Housing Market Monitor today. "At this rate of price decline, the excesses of the housing bubble will have largely disappeared by the end of the year. At the same time, the price decline implies an incredibly rapid loss of wealth. In real terms, the rate of price decline in the 20-city index would imply a loss of almost $6 trillion in real housing wealth over the course of the year, an average of $85,000 per homeowner."
I'm a so-so student of economic history, but I'd have to bet that, even adjusted for inflation, the only time that many Americans have lost that much wealth in a short period of time would have been during the Great Depression. I'm not even sure it happened during the Depression. (I understand: This hasn't happened yet; it's only a prediction.)
Repeating again: The CPER says prices are falling so rapidly that the bubble will be gone by the end of 2008, but the loss of housing wealth will be massive.
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- groups:
- News and Politics, Politics
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- tags:
- News and Politics, Politics, Economy, Accountability Now, 1 more
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Conniepae
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jjmaster, our economy is blasted to hell, but Iraq is not prospering. The ones prospering from this war is the 'Industrial Military Complex'. The same ones' we were warned about by previous Presidents.
Great Presidents have warned against the possibility of a future President abusing the 'Powers of the President' and implemented, checks and balances. Unfortunately, I think the 'checks and balances' have been systematically removed during the past eight years.
Will we ever get our checks and balances back? I fear not! If we were to gain ground, this Administration and mainstream media will spin fear until we are silenced by the (sheep) who have not been paying attention. Unfortunately, it's the majority of Americans who have been struggling trying to survive and have not had the time or desire to care about politics act as though they are (sheep).
Move along, nothing to see here and they do. (sheep)
- 4 years ago
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Conniepae
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jjmaster
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Our economy blasted to hell while Iraq is prospering at our expense? What is wrong with us... not that we were not in debt before too, but jeeps.... depression came before with war fringes right?
- 4 years ago
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jjmaster
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BooksBrown
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my question is, who profits from this mayhem?
- 4 years ago
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BooksBrown
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open_your_eyes
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our economy is literally going to shit America! Look at ourselves, look at the world, look at the violence. Stop it now before we still can! Or can we? is the worlds youth and adults to perverted, selfish, and sick minded to change there nasty disgusting habits? I'm only 17 and i can see it now people. I'm not a crazy, delusional kid and i have plenty of friends in school. I'm a former stoner/ partier. And i can see it people, our world is getting worse and worse every passing year. AND I WANT TO SEE OUR YOUTH AND PARENTS STRAIGHTEN UP AND GET ON TRACK PLEASE!
- 4 years ago
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open_your_eyes
