America's Economic Future – A Discussion By Ted Kavadas
I would like to highlight an article from last Thursday titled, “Second Wave of the Credit Crisis: Collapsing Commercial Real Estate.” The article gives a good summary of the Commercial Real Estate (CRE) situation as well as makes other interesting observations. CRE is yet another huge, menacing problem area inherent in our current economic situation. …
One of the classic articles of the housing bubble is “America’s House Party” from Time Magazine, June 2005. It really provides a flavor of the period, as well as provides a perspective of a bubble environment. Here is the link: http://www.time.com/time/magazine/article/0,9171,1069097,00.html SPX at 1032.81 as this post is written
In the Saturday edition of The Wall Street Journal, there is an op-ed from Martin Feldstein titled “How to Save an ‘Underwater’ Mortgage.” The editorial provides a good summary of the numbers behind “Underwater” mortgages. Also, I think the article is beneficial in that it highlights the problem of mortgage defaults and foreclosures, and how “Underwater” mortgages …
This article caught my interest; it is titled “About half of U.S. mortgages seen underwater by 2011”: http://www.reuters.com/article/companyNewsAndPR/idUSN0526831020090805 Apparently their projections for “underwater” mortgages is based upon their forecast quoted in the article: “Covering 100 U.S. metropolitan areas, Deutsche Bank in June forecast home prices would fall 14 percent through the first quarter of 2011, …
Here is an interesting New York Times editorial regarding foreclosures. Please note that I don’t necessarily agree with many of the recommendations, but the editorial does a nice job of summarizing some of the problems: http://www.nytimes.com/2009/06/02/opinion/02tue1.html?_r=1 “Solving” our residential real estate problems is going to be most difficult, in my opinion. It is a very complex …
This was an interesting editorial in The Wall Street Journal a few days ago concerning the “redefault” rate: http://online.wsj.com/article/SB124338503008056785.html These statistics are problematical, especially if one believes the economy will stagnate or worsen from this juncture. It also raises the question as to the effectiveness of intervention measures on default rates and housing prices. Many of the current …