Get Those Homeless Shelters Ready (Updated) 1
It’s just gonna get worse.
That’s bad news for house prices.
“Foreclosures are adding to the inventory of unsold homes, and are worsening the housing outlook,” said Patrick Newport, an economist with Global Insight Inc., an economic research firm in Waltham, Mass.
Foreclosures are concentrated in California, Arizona, Nevada, Arizona, Florida, Michigan and Ohio. Those states are going to face the most severe downturn in house prices – 20 percent to 30 percent in some areas.
And get ready for the solution from the Current Federal Administration: More tax cuts for the rich (via Susie):
When the economy is doing reasonably well, the debate is dominated by hype — by the claim that America’s prosperity is truly wondrous, and that conservative economic policies deserve all the credit.
But when things turn down, there is a seamless transition from “It’s morning in America! Hurray for tax cuts!†to “The economy is slumping! Raising taxes would be a disaster!â€
Addendum, 1/8/2008:
Those would be the tax cuts, heavily skewed to the rich, that don’t even expire for three more years.
But wait!
January 7, 2008 at 6:09 pm
I’m glad housing prices are coming down. In my opinion, houses in many parts of this country (maybe most) have been too high for a long time. Where I live, housing is cheap, but that’s not been true in most other areas.