Bad Credit? - Repair it here yourself!

There're many reasons you may want help for bad credit. We're here to help you understand what affects credit, what makes credit bad, how and what entities define your credit, guide you through the credit definitions, financial concepts, common misconceptions and provide you with information and tools that will help to solve your credit problems. Get help for bad credit now! To achieve this, we provide you with Free Access to a wealth of credit related content, forms, tools and calculators. We show you how to improve your bad credit step by step, reestablish your ability to borrow monies, how and where obtain loans, credit cards, mortgages and other financing. Repair Credit now!

Housing market is going to get worse

Tue Jun 3, 2008 02:06PM | By Tony

See more in Economy | Permalink | Email | Comments (0)

That is according to Lawrence Lindsey, who some say is a bit too pessimistic. I on the other hand think he is too optimistic. Here are few paragraphs taken out of context as they say, but believe me, they will give you an idea. And to drive the point home, revisit the post which shows the chart of historic home values. Read on ...

There are 129 million housing units in the United States, comprising owner-occupied, rented, and vacant units. Of these, 18.5 million are empty. This vacancy rate is 2.5 percentage points higher than it has been at any point in the half century the data have been tracked, translating into at least 3 million too many empty housing units in the country. This number, moreover, is rising. This is the most intractable part of the real estate bubble, for we cannot find a true bottom to home prices until this inventory of empty units starts to clear, and we cannot find a bottom to the mortgage finance market until home prices bottom out.

The problem with this is that the wealth loss to the household sector and to the financial services industry would be huge. A 30 percent drop in prices would shrink household assets by about $6.5 trillion. Under normal economic rules of thumb that would permanently lower household spending by $200 billion to $300 billion, or between 1.5 and 2 percent of GDP. Not enough for a recession by itself, but the collateral damage to the financial system would likely be sufficient to induce a downturn similar to those in the 1970s and early 1980s.

Post a comment

Name:

Email:

URL:

Remember personal info?

Comments:

Please enter the code as seen in the image above to post your comment: