Who is it going to be?

The battle has begun, will ALL US taxpayers get stuck with the bill to subsidize home ownership, or will those who choose to buy carry the load themselves???



http://www.theatlantic.com/business/archive/2010/08/pimcos-gross-calls-privately-held-mortgages-impractical-and-unrealistic/61645/
PIMCO’s Gross wants the government (read that US TAXPAYERS) to assume all risk for housing market. Are you ok with that???


http://news.yahoo.com/s/afp/20100817/pl_afp/useconomypropertyfinancestocks
The future of Fannie and Freddie – what a mess!


http://www.bloomberg.com/video/62242848/
CEO of radar logic talks about a HUGE check US taxpayers are going to be writing – well done video

http://money.ninemsn.com.au/article.aspx?id=7944644
Well done piece, simple. Pay attention to the last few lines and ask yourself what is in store for US builders, their employees and their suppliers? Why build new when there are so many more affordable options


http://www.american.com/archive/2010/august/dropping-the-ball-during-the-only-game-in-town
Another well done piece on how The Fed is acting (or not acting) effectively

US taxpayers, falling home ownership, looong pipeline for future foreclosures and more ...

This was a busy week as the main stream continues to wake up to the reality we have been sharing for years - there is a LOT more downside ahead of the US Housing Market!

http://www.cnbc.com/id/38669791
NY Times why every US taxpayer should be concerned . . .



http://www.upi.com/Business_News/2010/08/11/UPI-NewsTrack-Business/UPI-51841281543407/
UPI buyers are simply waiting – duh!


http://imarketnews.com/node/17794
1 in every 397 US homes CURRENTLY in foreclosure process, and the number seriously delinquent is far higher!


http://www.foxbusiness.com/markets/2010/08/12/bank-repossessions-drive-july-foreclosures/
Fox Foreclosures higher than ever, but not as high as they could be. Banks are managing foreclosures because of over 5 million seriously delinquent loans


http://www.usatoday.com/money/economy/housing/2010-08-11-housing11_cv_N.htm
USA Today well done piece on Fannie/Freddie and the government’s housing policy. Watch for US home ownership rates to fall from a peak of almost 70% to a bottom of around 50-55% within the next decade


http://www.cnbc.com/id/38654640
Reuters record low interest rates do nothing to increase demand. Almost 80% of all loan applications are for refi’s NOT new purchases


http://www.businessinsider.com/after-signs-of-improvement-commercial-real-estate-prices-fall-sharply-in-june-2010-8
commercial prices fall as well. IF you have followed what we share here, and what Kirk Nace has been sharing forever, commercial markets follow residential markets. If you are paying attention you will know that commercial markets are much further from an ultimate bottom (at least 8-10 years) than residential markets (5-7 years.) THINK people THINK!

The winds are picking up . . .

For quite some time now we have been sharing with you that the US Housing Market has been in the eye of the hurricane, well it's starting to move out of the eye. Winds are building and the back half of this housing hurricane will prove to be very, very strong. If you haven't shorted housing (SRS) or the markets in general (we like SDS and SPXU) you may find yourself with a dislocated hip from having kicked yourself so hard at some point in the next 6 months or so (it will likely be after the upcoming elections.) In any event here are this weeks mainstream media articles of note . . .


http://www.huffingtonpost.com/2010/08/06/fannie-mae-home-prices-to_n_672776.html

Fannie Mae now saying prices will continue dropping - DUH!


http://www.reuters.com/article/idUSN0622002720100807

Reuters Govt officials acknowledge just how pathetic results of subsidized loan mod programs really are . . . here come a lot more foreclosures!


http://www.prnewswire.com/news-releases/majority-of-american-families-plan-to-spend-less-than-last-year-or-nothing-at-all-on-back-to-school-shopping-according-to-rbc-consumer-outlook-index-100025504.html

families not spending money on back to school? Yeah, the economy is rebounding . . . are you high? Look around at the people you know, how many are better off financially than they were 1, 3, 5 or even 10 years ago? Ok take a look at how many are not. Does that look like improvement to you? Forget the statistics and stories that politicians and Realtors constantly throw at you (we all know how famous those two groups are for honesty and integrity) look at your own experiences and observations. Hmmm


http://www.dailymarkets.com/economy/2010/08/04/imf-us-real-estate-sectors-could-bring-banking-crisis-20/

US housing market continued correction could create 2nd wave of financial crisis . . . could or will???


http://news.yahoo.com/s/usnews/20100803/ts_usnews/housingmarkettakesanotherstepbackwards

US News & World Report Home sales hit new low. After huge drop in pending sales from April to May, pending sales again took another big hit from May to June


http://www.bloomberg.com/news/2010-08-01/greenspan-says-decline-in-u-s-home-prices-might-bring-back-the-recession.html
Bloomberg Former Fed head Greenspan warns of double dip



http://www.forbes.com/2010/07/26/employment-recession-economy-finance-opinions-contributors-mallory-factor.html

Forbes.com Would the government really spin jobs numbers just for political purposes??? Duh! If all the people who the government claims have quit looking for jobs (because they are so discouraged) were counted in unemployment numbers, we would be closer to Spain’s 20+% unemployment rate than we are to the highly inaccurate 9.5% our political machine wants us to see. Stop and ask yourself, with all of this recovery that is supposedly happening, who do you know that is better off financially now than 1, 5 or even 10 years ago??? Now ask yourself the converse, how many people do you know who are worse off? Hmmm, what does that tell you about the real economy, not the fairytale being spun by those in Washington DC???

Which end is up?

Is your head buried in the sand while your backside protrudes skyward for the whole world to come along and kick? Tay appention, here are some more interesting links for you to explore as you attempt to grasp a portion of the reality that has become the US housing market, and to an extent represents both the national and global economies . . .


http://www.benzinga.com/10/07/404577/foreclosures-continue-to-dramatically-increase-in-2010

interesting take on future of US housing market, and possibly US economy in general



http://money.usnews.com/money/personal-finance/real-estate/articles/2010/07/16/6-reasons-the-housing-market-hasnt-recovered.html

US News & World Report You’ve heard them all from us before, so here they are 6 reasons the housing market isn’t recovering, summarized by US News & World Report



http://www.reuters.com/article/idUSN2924663420100729

Reuters Lowest interest rates on record lead only to refinances, not new sales



http://finance.yahoo.com/news/Foreclosure-activity-up-apf-648738451.html?x=0&sec=topStories&pos=3&asset=&ccode=

Reuters Foreclosure activity continues to increase . . .



http://www.bloomberg.com/video/61784926/

Bloomberg Co Creator of Case Shiller housing index says US housing is “dead in the water.”

And the beat goes on . . .

8.5 million US homes currently for sale
+ 11 million US mortgages currently delinquent
+ 12 million US properties currently held by lenders and NOT on market
+ 15 million US homes under water
+ 20+ million more US strategic defaults and foreclosures coming
__________________________________
ENORMOUS supply for MANY years to come



no more tax credit
+ more stringent lending requirements
+ dropping credit scores
+ high unemployment
+ lack of consumer confidence
__________________________________
Historically low demand for years to come
Even NAR and their typically "pie in the sky" estimates are only projecting 5.3 million sales this year (we will actually end up closer to 4.8 million if you are keeping score)

what do YOU think will happen when supply is high and demand is low for the next 5-7+ years??? email Think@TRGHelp.com and ask for access to our upcoming call on "Where the US housing market is, how it got there, where it's going, why and how savvy property owners can maximize their opportunities.

Here are a few new links . . .



http://www.time.com/time/business/article/0,8599,2003578,00.html

Time house prices slashed across the country as sellers are forced to become more realistic – LOTS more to come!

http://www.cnbc.com/id/38204299

CNBC major drop in US credit scores will lead to less borrowing/less demand and even slower absorption

More relevant info on the US Economy and Real Estate Market

Over the past week or so here are some of the articles that caught our attention . . . check them out and we would love your thoughts, email us Info@TRGHelp.com (if you aren't already plugged into The RESULTS Group's 100 Club where you can learn to effectively communicate this information you are missing out! http://www.trg100club.com/ )


http://realestate.yahoo.com/promo/housing-double-dip-appears-to-be-underway.html
Yahoo/Zillow housing double dip under way – duh!


http://finance.yahoo.com/news/Biggest-Defaulters-on-nytimes-3203153456.html?x=0&sec=topStories&pos=4&asset=&ccode= NY Times The wealthy are walking away and defaulting far faster than the rest of the country . . . what do they know that you should?

http://www.forbes.com/2010/07/07/housing-double-dip-personal-finance-real-estate-dip.html?boxes=Homepagechannels Forbes.com second dip in housings correction well under way . . . 11 MILLION homes currently delinquent!!!

http://www.businessweek.com/news/2010-07-06/rogoff-says-u-s-housing-won-t-come-back-for-a-long-time.html business week Harvard economist says US Housing “won’t come back” for a long time

Updates you should be aware of - real estate market is ready to become Humpty Dumpty

Below are numerous links to main stream media articles all supporting what we have been sharing for years . . .


http://finance.yahoo.com/news/May-pending-home-sales-tumble-apf-2024500274.html?x=0&sec=topStories&pos=main&asset=&ccode=
AP – home sales drop in May to lowest level on record - DID YOU SEE THAT, HOME SALES DROP TO LOWEST LEVEL ON RECORD!!!



http://finance.yahoo.com/news/Home-refinancing-up-but-rb-1215423766.html?x=0&sec=topStories&pos=4&asset=&ccode=
Reuters home buying demand at 13 year low - DO YOU NEED MORE THAN ONE REPUTABLE SOURCE?

http://money.cnn.com/2010/06/30/real_estate/discounts_on_foreclosures/index.htm?source=cnn_bin&hpt=Sbin
CNN Money foreclosed homes selling at 30% discount - THERE ARE OPPORTUNITIES DO YOU KNOW HOW TO FIND AND TAKE ADVANTAGE OF THEM?

http://finance.yahoo.com/news/New-home-sales-plunge-33-pct-apf-1718773153.html?x=0&sec=topStories&pos=main&asset=&ccode=
AP – new home sales now at lowest level since 1963!!! - OH YEAH, IT'S NOT JUST RESALES

http://finance.yahoo.com/news/Mortgage-rates-sink-to-lowest-apf-2118457054.html?x=0&sec=topStories&pos=main&asset=&ccode=
AP – lowest rates since before 1971 and still VERY low demand - DESPITE WHAT IS NOW LOWEST RATES IN 50+ YEARS (4.58% LAST WEEK) WE STILL HAVE RECORD LOW DEMAND - OUCH!


Interesting Fact:
There is a $600 trillion derivatives market which equates to over $1.7million for each of 350million Americans – wow!