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The Cracks Are Showing In the Housing Market Once Again
Posted By Joshua Krause On July 17, 2014 @ 10:35 pm In Economy,Editor's Choice,Featured | No Comments
Cracked [1]
If you observe current events, it can seem like there are economic emergencies everywhere. Every segment of the economy appears to be under immense pressure. What with the massive student loan debt, federal debt, municipal debt, derivatives, and a stock market that seems to magically rise above it all, flying in the face of all logic and common sense, it’s surprising that the whole thing hasn’t come tumbling down yet. And yet, the next collapse may come from somewhere that is very familiar to us. It appears that many of us haven’t learned anything from the last bubble.
It’s possible that the next wave of economic malaise may come from the housing market once again. Economists were expecting another increase in home building and loans. Instead, housing starts dropped [2] 9.3 percent last month, and building permits fell 4.3 percent across the nation.
Meanwhile, The Wall Street Journal is telling everyone that there’s nothing to see here (which is tantamount to telling a crowded building that the smoke isn’t from fire). They’re claiming that these recent declines are in fact, due to an unusually rainy [3] season in the Southern United States. Apparently there has been a 30 percent drop in housing starts in the South. In the same paragraph the article mentions that there has been an increase of 28 percent in the Midwest and 14 percent in the Northeast. Surely those numbers alone would offset the bad weather in the South. The article also fails the mention the Western United States, where I can assure you that rain has not been a factor for quite some time.
Mortgage rates also fail to explain the situation, as they’ve been dropping significantly [4] the past 6 months. Perhaps a better explanation would be the 5 percent decrease [5] in home loan applications that took place in a May and June, which was also coupled with a slight decrease in the average loan size. Doesn’t that make real sense? That perhaps not as many people can afford to buy a home, and maybe construction companies and investors are beginning to see the writing on the wall? 2+2=4, and stuff like that?
The truth is the housing market, and the economy at large, has never fully recovered. That hasn’t stopped the price of housing from returning to pre 2008 levels in some areas, and the skyrocketing price of the stock market. The true nature of these events is obvious, when it can be seen that these prices have gone up significantly since Bernankes QE4 dumped billions [6] of dollars into the economy every month. It would make sense that the markets are finally beginning to crack up, since Yellen has expressed her desire to stop quantitative easing [7] entirely this year. Again, 2 and 2 equals what now?
Don’t let yourself get caught up in these schemes. The Bernankes, Yellens, Buffets, and Soros’ of the world expect you to buy buy buy just as they’re getting around to selling [8]. They rely on hype and insider secrets to fleece regular folks who enter these markets. They’re trying to prop up the corpse of this economy like it’s “Weekend at Bernie’s” and they expect us to buy it, literally and figuratively. Well, all I can say is, don’t.
Delivered by The Daily Sheeple [9]
Contributed by Joshua Krause of The Daily Sheeple [10].
Joshua Krause is a reporter, writer and researcher at The Daily Sheeple [11]. He was born and raised in the Bay Area and is a freelance writer and author. You can follow Joshua’s reports at Facebook [12] or on his personal Twitter [13]. Joshua’s website is Strange Danger [14] .
Article printed from The Daily Sheeple:
http://www.thedailysheeple.comURL to article:
http://www.thedailysheeple.com/the-cracks-are-showing-in-the-housing-market-once-again_072014URLs in this post:
[1] Image:
http://www.thedailysheeple.com/wp-content/uploads/2014/07/Cracked.png[2] dropped:
http://www.businessinsider.com/housing-starts-building-permits-2014-7[3] unusually rainy:
http://online.wsj.com/articles/housing-starts-sank-9-3-in-june-1405600397[4] dropping significantly:
http://www.nytimes.com/2014/07/18/upshot/housing-starts-fell-in-june-heres-why-thats-bad-news.html[5] decrease:
http://dsnews.com/news/07-11-2014/new-home-purchases-drop-june[6] dumped billions:
http://www.forbes.com/sites/afontevecchia/2012/12/12/qe4-is-here-bernanke-delivers-85b-a-month-until-unemployment-falls-below-6-5/[7] stop quantitative easing:
http://www.washingtonpost.com/opinions/the-end-of-quantitative-easing-is-good-news/2014/07/13/ae1815be-0863-11e4-a0dd-f2b22a257353_story.html[8] to selling:
http://www.moneynews.com/MKTNews/billionaires-dump-economist-stocks/2012/08/29/id/450265/[9] The Daily Sheeple:
http://www.TheDailySheeple.com/[10] The Daily Sheeple:
http://www.thedailysheeple.com/[11] The Daily Sheeple:
http://thedailysheeple.com/[12] Facebook:
https://www.facebook.com/pages/The-Daily-Sheeple/114637491995485[13] Twitter:
https://twitter.com/vagabondjosh[14] Strange Danger:
http://stdanger.blogspot.com
