Home Prices Rising Not the Same As Recovery. There is No Recovery

Home Prices Are Rising. Is That Recovery, or a Bubble? Home prices are still rising according to the latest NAR data showing a monthly gain of 1.3% and 9.9% year to year increase in December. That’s consistent with a wide variety of home price measures,

Housing Smoke and Mirrors (28) – “Making Bricks Without Clay”

Written by Adam Whitehead, KeySignals.com “Data!Data!Data! I can’t make bricks without clay.” The pattern of data emerging from the US housing market suggests a weakening in activity and price momentum.

BubbleOmiX Predicts US Employment Will Climb By 5-Million Over Next 18-Months

by Guest Author Andrew Butter

The essential theory of BubbleOmix is that Ying follows Yang or in other words What Goes-Around Comes Around.

Putting aside all the doom and gloom about the recently released unemployment figures, there may be a silver line…tarnished but silver all the same.

The important number is employment, that’s the demand side of the equation which is broadly independent of the supply side. Companies (and the government too but they are never a good marker for free-enterprise), look to buy services, The fact that there may be a lot of unemployed (and unemployable) people doesn’t change the numbers of jobs on offer; it just changes the wages the jobs pay…slightly.

GSEs and the Housing Crisis: Studies Ignored

by Guest Author Fabius Maximus Summary: Among our most serious problems is the success of well-funded engines of propaganda at manipulating public opinion, making effective public policy reforms almost impossible. Here we examine one example, convincing Americans that the government caused the housing bubble. This is a follow-up to Facts are an obstacle to the …

Six Rebuttals to the Argument that Congress or Fannie and Freddie Caused the Crisis

by Guest Author Mike Konczal

Sigh. Mayor Bloomberg:

“It was not the banks that created the mortgage crisis. It was, plain and simple, Congress, who forced everybody to go and give mortgages to people who were on the cusp… But they were the ones who pushed Fannie and Freddie to make a bunch of loans that were imprudent, if you will. They were the ones that pushed the banks to loan to everybody.”

It seems there are people who can’t accept that some markets, particularly financial ones, are disastrous when completely unregulated — and thus find any far-fetched excuse to blame the government instead. Since this line of argument continues to pop up, how should one respond to the idea that Congress and Fannie Mae/Freddie Mac caused the housing crisis? Here are six facts to back you up: