Daily Archives: July 20, 2011

Pete the Banker: Another Recession Coming

 Economist Gary Shilling predicts plunging home prices will throw us into another recession:

“Housing prices are due to slide another 20 percent nationwide and will throw the U.S. economy into a fresh recession probably sometime next year, says economist Gary Shilling.

“The problem is there are too many excess inventories. We estimate that there are 2 (million) to 2.5 million excess housing unit inventories over and above the normal working levels,” Shilling tells Yahoo’s Daily Ticker.

The United States normally builds about 1.5 million houses a year, so with such excess inventory lagging on the market, it’s going to take around four to five years for normalcy to return.

“Excess inventories are the mortal enemy of prices, and we’re looking at another 20 percent decline in prices,” Shilling says.

A 20 percent decline would send the number of underwater mortgages — defined as owing more on a home than it’s worth — rising to 40 percent from 23 percent today, which is enough to devastate an already weak economy.”

Read more here.

 
Tell ’em where you saw it. Http://www.victoriataft.com

Pete the Banker: Talk of Downgraded US Bonds Not New

 Remember this from April 21 2011 news cycle?  Since the Administration, Treasury Dept, and Senate have shown no real leadership in providing legislation reforming the former GSE’s, perhaps the real reason that the USA faces a downgrade in August.
 
“Standard & Poor’s changed its outlook on the government-sponsored enterprises this week to negative from stable, mirroring its move on U.S. debt obligations earlier.
When analysts placed the U.S. sovereign rating on negative outlook, it pointed to the conservatorship of Fannie Mae and Freddie Mac as the main cause. Analysts estimated it could cost 3.5% of GDP to capitalize and relaunch Fannie and Freddie – in addition to the 1% GDP already invested.”

DEMOCRATS: FAILURE TO LEAD.
Tell ’em where you saw it. Http://www.victoriataft.com

Pete the Banker: Another Recession Coming

 Economist Gary Shilling predicts plunging home prices will throw us into another recession:

“Housing prices are due to slide another 20 percent nationwide and will throw the U.S. economy into a fresh recession probably sometime next year, says economist Gary Shilling.

“The problem is there are too many excess inventories. We estimate that there are 2 (million) to 2.5 million excess housing unit inventories over and above the normal working levels,” Shilling tells Yahoo’s Daily Ticker.

The United States normally builds about 1.5 million houses a year, so with such excess inventory lagging on the market, it’s going to take around four to five years for normalcy to return.

“Excess inventories are the mortal enemy of prices, and we’re looking at another 20 percent decline in prices,” Shilling says.

A 20 percent decline would send the number of underwater mortgages — defined as owing more on a home than it’s worth — rising to 40 percent from 23 percent today, which is enough to devastate an already weak economy.”

Read more here.

 
Tell ’em where you saw it. Http://www.victoriataft.com

Pete the Banker: Talk of Downgraded US Bonds Not New

 Remember this from April 21 2011 news cycle?  Since the Administration, Treasury Dept, and Senate have shown no real leadership in providing legislation reforming the former GSE’s, perhaps the real reason that the USA faces a downgrade in August.
 
“Standard & Poor’s changed its outlook on the government-sponsored enterprises this week to negative from stable, mirroring its move on U.S. debt obligations earlier.
When analysts placed the U.S. sovereign rating on negative outlook, it pointed to the conservatorship of Fannie Mae and Freddie Mac as the main cause. Analysts estimated it could cost 3.5% of GDP to capitalize and relaunch Fannie and Freddie – in addition to the 1% GDP already invested.”

DEMOCRATS: FAILURE TO LEAD.
Tell ’em where you saw it. Http://www.victoriataft.com

Does Making Me Poorer Make You Richer?"The Trouble With Socialism is Eventually You Run Out of Other People’s Money "

The only way to end our fiscal nightmare is through “shared sacrifice.” So says the President, Debbie Wasserman Schultz and all the democrats who received the talking points.
So my question is:
If I took to the streets and begged you not to spend.
If I called and begged you not to spend.
If I pleaded with you and begged you not to spend.
If I took a 20% or so hit on the value of my home.
If I have more relatives out of work and have to help them.


If I have more relatives living with me because times are very tough.
If I have had 10% of the value of my money STOLEN because of QE 1 & 2.
If I have to pay a higher cost of EVERYTHING because of increased commodities and energy prices.
If I have to do that because of your screw ups: Have I shared the sacrifice yet?

British Prime Minister Margaret Thatcher famously said,

“The trouble with socialism is eventually you run out of other people’s money.”

I’m tapped out Debbie and Barack. Your redistributionism has made me poorer and now I can’t help myself to the extent I would have been able to before.
Happy?

Does making me poor make someone else rich? If so, please send them my way. I could use the help, you bastards, but I can’t help myself because you STOLE FROM ME and now I can’t afford it.

Their philosophy is, ‘Things will be better if the richer are poorer and the poor are too.”

Tell ’em where you saw it. Http://www.victoriataft.com