Comments on: Housing Market Continues to Deteriorate http://www.nakedcapitalism.com/2007/09/housing-market-continues-to-deteriorate.html Sun, 22 Nov 2009 19:08:53 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Yves Smith http://www.nakedcapitalism.com/2007/09/housing-market-continues-to-deteriorate.html#comment-958 Yves Smith Sun, 30 Sep 2007 04:13:00 +0000 http://www.nakedcapitalism.com/2007/09/housing-market-continues-to-deteriorate/#comment-958 Anon of 3:29 PM,<br/><br/>The reason for showing the Shedlock charts wasn't to make a statement about the cause of this housing recession vs. the one in the early 1990s, but their relative severity. This one clearly looks to be far worse.<br/><br/>Anon of 4:44 PM.<br/><br/>I assume you mean the Shedlock charts, since there are links for the other citations. Frankly, I don't know where he got it from (his original post doesn't indicate a source) so you might e-mail him. Anon of 3:29 PM,

The reason for showing the Shedlock charts wasn’t to make a statement about the cause of this housing recession vs. the one in the early 1990s, but their relative severity. This one clearly looks to be far worse.

Anon of 4:44 PM.

I assume you mean the Shedlock charts, since there are links for the other citations. Frankly, I don’t know where he got it from (his original post doesn’t indicate a source) so you might e-mail him.

]]> By: Anonymous http://www.nakedcapitalism.com/2007/09/housing-market-continues-to-deteriorate.html#comment-956 Anonymous Sat, 29 Sep 2007 20:44:00 +0000 http://www.nakedcapitalism.com/2007/09/housing-market-continues-to-deteriorate/#comment-956 Can you tell me where I can find this data ?<br/><br/>Thanks. Can you tell me where I can find this data ?

Thanks.

]]> By: Anonymous http://www.nakedcapitalism.com/2007/09/housing-market-continues-to-deteriorate.html#comment-946 Anonymous Thu, 27 Sep 2007 19:29:00 +0000 http://www.nakedcapitalism.com/2007/09/housing-market-continues-to-deteriorate/#comment-946 I agree the final chart is interesting, but I think there were differences in the overall economic context in the 80s/90s.<br/><br/>My impression is that both the early 80s and the 88-92 housing problems were caused by an overall recession (and high interest rates in the early 80s).<br/><br/>In this cycle a debt bubble seems to have created the appearance of more demand than was really sustainable. That caused overbuilding, overpricing, and a big inventory overhang. In past cycles, it seemed like high interest rates and economic recession triggered a housing problem while inventory was fairly reasonble.<br/><br/>In this one, it seems like the overbuilding/pricing/bubble-mentality triggered the housing problem on its own. As the housing problem grew, that began to trigger lower access to home financing and may trigger a recession. <br/><br/>So, it seems like we are entering the beginning of what traditionally causes a housing problem (financing/recession) from a different initial state ( overbuilt, over inventoried, over priced). I agree the final chart is interesting, but I think there were differences in the overall economic context in the 80s/90s.

My impression is that both the early 80s and the 88-92 housing problems were caused by an overall recession (and high interest rates in the early 80s).

In this cycle a debt bubble seems to have created the appearance of more demand than was really sustainable. That caused overbuilding, overpricing, and a big inventory overhang. In past cycles, it seemed like high interest rates and economic recession triggered a housing problem while inventory was fairly reasonble.

In this one, it seems like the overbuilding/pricing/bubble-mentality triggered the housing problem on its own. As the housing problem grew, that began to trigger lower access to home financing and may trigger a recession.

So, it seems like we are entering the beginning of what traditionally causes a housing problem (financing/recession) from a different initial state ( overbuilt, over inventoried, over priced).

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