United States Heading towards a Depression?

those Miami condos I mention earlier that went from 150k to 80k

they are 60k now

they were 80k pre-construction so even if you had the hook up to buy one pre construction, you are in the hole now if you are still holding it

 

You are confusing a tax cut on a working family, with the public assistance your parents receive to help pay for your computer time.

 

180 days after the thread was started and still no "Great Depression."

 

Oh, give it time... It will come!

 

you guys understand how short a time 6 months is in economic terms right?

 

Of course.. just long enough for a correction

 

I don't think they do. It doesn't seem they have any point of reference for the Great Depression, which lasted several years, and started very slowly.

 

dude the term "correction" has become such a joke, for while every person in real estate down here was using that term, its just a "correction"

an investment losing 60% of its value is not a correction, its bloodbath

tell us in infinite wisdom MIA when the nationwide housing crash will turn around , so we laugh at your predictions later

 

It is when that property was overvalued by 300% to begin with. That "bloodbath" you think you are seeing is a correction.

It already has.

 

The lack of knowledge on both sides for what constitutes a business cycle, is troubling.

This is the correction, however it is a deep recession that has only started. Whether or not it becomes a depression, depends upon government strategy. If they cartelize industry and subsidize all of the losers like they did under Hoover, then it could get very bad.

Make no mistake, this is a global recession triggered (but not caused exclusively by) the housing crisis which is just a manifestation of loose credit and dangerous monetary policy.

The FED might get lucky and shift the hurt somewhere else (Mia's position that housing has already bottomed and is ready to stabilize), as they did with the dotcom bust and 9/11 panic. But I'm not so sure that is possible, because the instability is on a global scale, not contained within one or two domestic industries.

 

in a few more months it actually going to be cheaper to buy a place then it is for developer to build one, I think that is bit beyond a "correction"

yeah sure, where? the last news I read was that values where even starting to fall in the last holdouts like NYC and South Carolina

any links or just wishful thinking

also the stock market just took a decent sized dump, possibly the first of many

 

Yeah, this is a correction, if correction means recession.

A wrecked housing market, with soaring gas prices, with a restrictive credit market does not make for a good economy.

It's already like that where I live. There are so many unsold LUXURY condos (waterfront, private marinas, great views, etc.) here that will never be sold. AND, they are REALLY nice.

They will glut the market for possibly decades (I'm not exaggerating, just the nature of this housing market).

The nice thing about it is, eventually (say within 5 years), you can live ilke a king (or queen) for a song and a dance.

 

We've got another 80 home subdivision going up now, and if the referendum would have passed, we'd have a residential development for 7,000 going in as well.

It really depends on where you are. Home values in your neck of the woods were always way overvalued. That and construction costs/labor are greater as well. That said, from where many sit, it is quite the opposite. Just because swampwater is in the dumps, does not mean the whole country is as well.

 

ummm, in Miami alone there is suposedly another 20k+ of units coming online in the next year or two adding to the huge amount of inventory that is already there, what do you think that statement proves?

although its true where you live probably didn't blow up as much as down here, and houses probably only cost what like 40-50k in the arctic wasteland you call home, but I think it will have its own version of the crash as well

florida is just ahead of the curve, the rest of the states are following its lead

and to think the larger crashes in the states which actually have money, won't effect the economy is rather naive

you got those links for the recovering housing market?

 

http://seekingalpha.com/article/82172-the-hindenburg-omen-crash-signal-in-play

Sorry if this was already posted, but I believe I read somewhere that there was 4 or 6 (forget which) of these confirmed in the month of June. Which means a good chance of more disaster within 120 days of June 6th.

 

No links for you, just the usual Miastradamus crystal ball.

 

I suppose all the problems in the economy is good for trailer park developments and the population in your trailer park will see explosive growth.

 

Fannie & Freddie just received an anvil to the top of their heads.

 

These homes are already sold/spoken for and in demand. I'm not talking about new vacant homes. I'm talking about homes that are already pre-sold.

We've been through this before man. You know they cost a lot more than that. Some of the taxes on homes here are $40-$50k/year.

Actually Florida is predominantly filled with retirees from other parts of the country looking for cheap/affordable housing and a warm climate. If anything its much cheaper to eek out an existence in Florida than it is in the midwest!

 

many of the houses in maimi are already sold and there are huge legal battles going on where owners are trying to get out of their contracts

maybe but the average listing price here is still 2x the average listing price in wisconsin

this quote makes me think you have not lived very many places

florida cheaper then the mid-west .... lol