Asexpected the long cycle decline is now over and liquidation is nolonger driving the market. As I posted in late 2008, no constructiveaction would result in a five year work out in which mortgages wouldbe resolved as they came due or went into market driven voluntaryliquidation. That was the worst way to handle the credit crisis andit led directly to a sharp reduction in the number of potentialborrowers which stalled the recovery.
Therewas a fix, but we did not go there. Today we have a weak marketslowly rebuilding. This will take time, but expect the buildingcomponent to lead as they are making deals work.
Thiswill in time be understood as the administration's greatest failure. Yet today, few understand that it can be fixed even now. At least itwould be a lot cheaper though a lot less profitable as there are nocustomers to rescue.
Whatever the result, the USA is the beneficiary of ample cheap housingalthough that certainly was nobody's plan.
CASE-SHILLER: HOUSE PRICES RISE 3% FROM LAST YEAR
UPDATE:Case-Shiller isright in line.
The widely followedhouse price index showed prices rising 3.0% year-over year, just atad ahead off expectations of 2.95%.
http://www.businessinsider.com/september-case-shiller-2012-11
ORIGINAL POST: Thegold standard of housing indices comes out at 9:00 AM.
Nomura has the quickpreview:
US Case-Shiller homeprice index (9:00 EDT): We expect the Case-Shiller 20-city home priceindex to show a 3.6% y-o-y increase in September as price gainscontinue to spread across the country (Consensus: 2.98%, previous:2.03%). An increasing number of major cities each month are nowexperiencing year-on-year price gains – 17 in August compared withthree in January.
The housing rebound isunquestionably one of the most important economic stories in the USand in fact in the world.
We'll be covering thenumber here LIVE.
Readmore: http://www.businessinsider.com/september-case-shiller-2012-11#ixzz2DXMRLh3r
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