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The real estate market is crashing faster than anyone had anticipated. Housing prices have fallen in 17 of 20 of the nation's largest cities and the trend lines indicate that the worst is yet to come. March sales of new homes plummeted by a record 23.5% (year over year) removing all hope for a quick rebound. Problems in the subprime and Alt-A loans are mushrooming in previously "hot markets" resulting in an unprecedented number of foreclosures. The defaults have slowed demand for new homes and increased the glut of houses already on the market. This is putting additional downward pressure on prices and profits. More and more builders are struggling just to keep their heads above water. This isn't your typical 1980s-type "correction"; it's a full-blown real estate cyclone smashing everything in its path.

Tremors from the real estate earthquake won't be limited to housing--they will rumble through all areas of the economy including the stock market, financial sector and currency trading. There is simply no way to minimize the effects of a bursting $4.5 trillion equity bubble.

The reason the stock market is flying-high is because the Federal Reserve has been ginning up the money supply to avoid a Chernobyl-type meltdown. All that new funny-money has to go somewhere, so a lot of it winds up in the stock market.

But then that's the plan---to shift zillions from one class to another through massive equity bubbles. All it takes is artificially-low interest rates and a can of WD-40 to keep the printing presses rolling. It's so simple we won't dignify it by calling it a "conspiracy". It's just a swindle, pure and simple. But it never fails.

Every time the Fed prints up another batch of crisp $100 bills; they're confiscating the hard-earned savings of working class people and retirees. And, since the dollar has dropped roughly 40% since Bush took office in 2000; the government has absconded with 40% our life savings.

That's the truth about inflation; it is taxation without representation, but you won't find that in the government's statistics. In fact, the Consumer Price Index (CPI) deliberately factors out food and energy so the working guy can't see how the Fed is robbing him blind. The only way he can gauge his losses is by going to the grocery store or gas station. That's when he can see for himself that the money he works so hard to earn is steadily losing its purchasing power.

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http://www.counterpunch.org/whitney05032007.html

Looks like we are in for a storm. I'm so glad the govt has our best interests at heart

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The real estate market is crashing faster than anyone had anticipated.

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And, since the dollar has dropped roughly 40% since Bush took office in 2000; the government has absconded with 40% our life savings.

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EsKregg said:

The Fed has pumped up the money supply. It used to be public knowledge how much new money they were printing. Now it is secret. They could have doubled it AGAIN since Bush came in and we wouldn't know.

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Economist said:

....I'd post a link but people get funny on here about dot-gov links).

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If people do then they are fucking morons - the Shroomery automatically sends these links through an anonymous redirection website. Anyone who is concerned can actually check the link instead of jumping to brazen assumptions. Please post the link.

fireworks_god said:

If people do then they are fucking morons - the Shroomery automatically sends these links through an anonymous redirection website. Anyone who is concerned can actually check the link instead of jumping to brazen assumptions. Please post the link.

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