House Prices and Recessions

This blog has long maintained that the house price crisis, which governments and politicians in the UK and USA have both tried to ignore, remains basic to the dire and contnuing economic crisis, which is now quite clearly once again rearing its head.

The sell off on Wall Street, already well down today on the turmoil underway across the EU, got new legs when US home sales last month were announced as down another 3.5 per cent to the lowest levels for fourteen years!

Amongst all the numbers from the press release, this paragraph in particular caught my eye:

Foreclosures and short sales — when a lender agrees to sell for less than what is owed on a mortgage — made up about 29 percent of all home sales last month. That's up from about 10 percent in past years. And a wave of foreclosures are being held up, either by backlogged courts or lenders awaiting state and federal probes into troubled foreclosure practices.

In the UK the ongoing manipulation of house price statistics, that amazingly contiues in the mainstream media, month after month will quite soon inevitably be sussed out by the intending buyers who are its victims.

A Buyer's Strike is coming, sped on its way by the rapid realisation that owning a property to which you are heavily mortgaged and thus indebted for life, and will likely never more appreciate, is even less likely to prove sensible, when looting, arson and riot could occur anywhere, at any time once our democracy is totally abandoned, as is now becoming the case!

I have suggested possible solutions again and again on these pages, if any interested readers remain, you can find some on the following search links:

Walkaways

Fannie Mae

House Price Crash

Mortgages