Depression territory

Government policies driven by a SOCIAL goal of "fairness" created a system of false ECONOMIC incentives that wrecked the housing market and caused this catastrophe. Then, rather than let the market clear the mess, Government foolishly continues to try to prop it up by throwing money down a rat hole of futile stop-gaps to try to keep people in houses they can't afford, and never could afford. The money being thrown away is borrowed, adds to the monstrous deficit, and is not available for productive uses. A perfect storm of stupidity.

Government directed social-economic planning is the core idea, the Holy Writ, of left liberalism, always has been, always will be. They will learn nothing from this. Less than nothing, because the lesson they will see is that Government did not go far enough, did not do something to sufficient extent, to make it all work. The best anyone can do is try to keep these people out of public office, far away from the levers of Government power.

Byron


CNBC:

Things were bad but the broader economy never reached Depression territory. The housing market, on the other hand, just crossed that threshold.

Home values have fallen 26 percent since their peak in June 2006, worse than the 25.9-percent decline seen during the Depression years between 1928 and 1933, Zillow reported.

November marked the 53rd consecutive month (4 ½ years) that home values have fallen.

What’s worse, it’s not over yet: Home values are expected to continue to slide as inventories pile up, and likely won't recover until the job market improves.