The big debate amongst our colleagues the past several weeks has centered around the importance of the housing market in ensuring a strong recovery. In the face of pundits’ claims such as one proposed by A. Gary Shilling that housing prices could be expected to fall another 20%, we have remained adamant contrarians bearing witness … Read more
The S&P/Case-Shiller 20-city housing index fell compared with a year ago, as the housing market dips for second time nationally.
“The vast wealth of our country is tied up in leveraged real estate, and most property purchased in the last decade is under water. There can be no positive economic resolution until this is dealt with,” he says.
So Bleier wants to see a legislative act — “The Real Estate Debt Restructure Act of 2011.” It would require banks to go line-by-line to examine each asset of every mortgage-backed security (and their derivatives). Banks would have to renegotiate bad loans and then would be allowed to write them off to wipe their balance sheets clean.
Don’t hold your breath for a bounce in home prices We’ve held firm to our belief that the strength of economic recovery depends on the return of housing prices to stable levels. Now expectations are that housing prices have more to fall and could compromise the pace of economic recovery. “The average home price in … Read more