Just a little FYI for my readers…….
Remember back to 2007…..that was the year that the economy dropped like a rock…..and the housing market lead they way…..and we have been clawing back ever since……lots of lost money and lots of anger by the people of this country.
The president and the Congress worked hard (sorry that is the wrong word but for the sake of sanity I will let it go) to make sure that this type of crash never happens again…..do you believe that? (then I have a bridge I would like to talk about)…..
Here are some other troubling anecdotal signals on the housing market:
1. A major financial website recently ran a guide to the best cities to “flip” houses in. (I don’t want to encourage the behavior.) Real estate speculation via house “flipping” was another early sign of trouble ahead.
2. A few days later, news arrived that home prices in the Bronx had shot up by an astonishing 30% in the first quarter. Crazy advances in home values were, a decade ago, also a signal of trouble ahead.
3. Ads, then as now, were running on TV for “quick mortgages.”
All of these signals raise a serious question: Are we getting closer to another housing meltdown that will once again damage your investment portfolio?
Source: The seeds of the next housing crisis have been planted – MarketWatch – Linkis.com
Here we go again sports fans……
There have always been market fluctuations and as long as there are markets there always will be.
Maybe so but these are same indicators that lead to the crash in 2007….if you would like to call that a fluctuation then so be it……but to me it does not bode well for the outlook….
Yes I agree they are the same indicators that led to the 2007 crash … but aren’t most of the indicators that have led to most of our fluctuations been similar? The fact is that our finances have gone up and down and come and gone and fell and became strong again over and over and over again and with the uncertainties of world market conditions I expect to see continuing cycles of the same thing for a lot of years to come.
Not when you talk about deep crashes….if you talking about 300 pt correction then yes….I am talking about deep bottoms…..my point is this is suppose to not happen again because we fixed the problem…that is the lie and no one gives a shit that nothing has changed….I guess we have so much cash laying around it does not matter that we lose a bit here and there.
We were supposed to have fixed the problem once we emerged from the 1929 crash and it’s aftermath too … The New Deal was supposed to have fixed the problem.
Dodd-Frank is the one these days….