Housing Armageddon: 12 Facts Which Show That We Are In The Midst Of The Worst Housing Collapse In U.S. History

The Economic Collapse

We are officially in the middle of the worst housing collapse in U.S. history - and unfortunately it is going to get even worse.  Already, U.S. housing prices have fallen further during this economic downturn (26 percent), then they did during the Great Depression (25.9 percent). 

Approximately 11 percent of all homes in the United States are currently standing empty.  In fact, there are many new housing developments across the U.S. that resemble little more than ghost towns because foreclosures have wiped them out.  Mortgage delinquencies and foreclosures reached new highs in 2010, and it is being projected that banks and financial institutions will repossess at least a million more U.S. homes during 2011. 

Meanwhile, unemployment is absolutely rampant and wage levels are going down at a time when mortgage lending standards have been significantly tightened.  That means that there are very few qualified buyers running around out there and that is going to continue to be the case for quite some time to come.  When you add all of those factors up, it leads to one inescapable conclusion.  The "housing Armageddon" that we have been experiencing since 2007 is going to get even worse in 2011.

Right now there is a gigantic mountain of unsold homes in the United States.  It is estimated that banks and financial institutions will repossess at least a million more homes this year and this will make the supply of unsold properties even worse.  At the same time, millions of American families have been scared out of the market by this recent crisis and millions of others cannot qualify for a home loan any longer.  That means that the demand for unsold homes is at extremely low levels.

So what happens when supply is really high and demand is really low?
That's right - prices go down.

Hopefully housing prices don't have too much farther to go down.  Ben Bernanke and the boys over at the Federal Reserve are doing their best to flood the system with new dollars in order to prop up asset values, but you just can't create qualified home buyers out of thin air.

Many analysts are projecting that U.S. housing prices will decline another ten or twenty percent before they hit bottom.  In fact, quite a few economists believe that the total price decline from the peak of the market in 2006 will end up being somewhere in the neighborhood of 40 percent.

But whether prices go down any further or not, the truth is that the housing crash that we have already witnessed is absolutely unprecedented.

The following are 12 facts which show that we are in the midst of the worst housing collapse in U.S. history....

#1 Approximately 11 percent of all homes in the United States are currently standing empty.

#2 The rate of home ownership in the United States has dropped like a rock.  At this point it has fallen all the way back to 1998 levels.

#3 According to the S&P/Case-Shiller index, U.S. home prices fell 1.3 percent in October and another 1 percent in November.  In fact, November represented the fourth monthly decline in a row for U.S. housing prices.  Many economists are now openly using the term "double-dip" to describe what is happening to the housing market.

#4 The number of homes that were actually repossessed reached the 1 million mark for the first time ever during 2010.

#5 According to RealtyTrac, a total of 3 million homes were repossessed by mortgage lenders between January 2007 and August 2010.  This represents a huge amount of additional inventory that somehow must be sold.

#6 72 percent of the major metropolitan areas in the United States had more foreclosures in 2010 than they did in 2009.

#7 According to the Mortgage Bankers Association, at least 8 million Americans are at least one month behind on their mortgage payments.

#8 It is estimated that there are about 5 million homeowners in the United States that are at least two months behind on their mortgages, and it is being projected that over a million American families will be booted out of their homes this year alone.

#9 Deutsche Bank is projecting that 48 percent of all U.S. mortgages could have negative equity by the end of 2011.

#10 Some formerly great industrial cities are rapidly turning into ghost towns.  For example, in Dayton, Ohio today 18.9 percent of all houses are now standing empty.  21.5 percent of all houses in New Orleans, Louisiana are standing vacant.

#11 According to Zillow, U.S. home prices have already fallen further during this economic downturn (26 percent) than they did during the Great Depression (25.9 percent).

#12 There are very few signs that the employment situation in the United States is going to improve any time soon.  4.2 million Americans have been unemployed for one year or longer at this point.  While there has been some nominal improvement in the government unemployment numbers recently, other organizations are reporting that things are getting even worse.  According to Gallup, the unemployment rate actually rose to 9.6% at the end of December.  This was a significant increase from 9.3% in mid-December and 8.8% at the end of November.

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Even Donald Trump Is Warning That An Economic Collapse Is Coming

The Economic Collapse
Feb 3, 2011
In a shocking new interview, Donald Trump has gone farther than he ever has before in discussing a potential economic collapse in America.  Using phrases such as “you’re going to pay $25 for a loaf of bread pretty soon” and “we could end up being another Egypt”, Trump explained to Newsmax that he is incredibly concerned about the direction our economy is headed. 

Whatever you may think of Donald Trump on a personal level, it is undeniable that he has been extremely successful in business.  As one of the most prominent businessmen in America, he is absolutely horrified about what is happening to this nation.  In fact, he is so disturbed about the direction that this country is heading that he is seriously considering running for president in 2012.  But whether he decides to run in 2012 or not, what Trump is now saying about the U.S. economy should be a huge wake up call for all of us.

Trump says that the U.S. government is broke, that all of our jobs are being shipped overseas, that other nations are heavily taking advantage of us and that the value of the U.S. dollar is being destroyed.  The following interview with Trump was originally posted on Newsmax and it is really worth watching….



Now, you may or may not think much of Donald Trump as a politician, but when a businessman of his caliber starts using apocalyptic language to describe where the U.S. economy is headed perhaps we should all pay attention.

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Global food prices hit new record high



Global food prices have hit a new record high, amid fears that the escalating cost of bread and meat is adding to the turmoil in the Middle East.



The Telegraph

By Harry Wallop,

Consumer Affairs Editor
Feb. 3, 2011

The United Nations Food and Agriculture Organization (UN FAO) gave warning that the high prices, already above levels in 2008 which sparked riots, were likely to rise further.

The FAO measures food prices from an index made up of a basket of key commodities such as wheat, milk, oil and sugar, and is widely watched by economists and politicians around the world as the first indicator of whether prices will end up higher on shop shelves.

The index hit averaged 230.7 points in January, up from 223.1 points in December and 206 in November. The index highlights how food prices, which throughout most of the last two decades have been stable, have taken off in alarming fashion in the last three years. In 2000 the index stood at 90 and did not break through 100 until 2004.

Surging food prices have come back into the spotlight after they helped fuelled protests that toppled Tunisia's president in January. Food inflation has also been among the root causes of protests in Egypt and Jordan, raising speculation other nations in the region would secure grain stocks to reassure their populations.

Abdolreza Abbassian, an economist at the FAO, said: "The new figures clearly show that the upward pressure on world food prices is not abating.

"These high prices are likely to persist in the months to come. High food prices are of major concern especially for low-income food deficit countries that may face problems in financing food imports and for poor households which spend a large share of their income on food."

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Minority Report: Companies Push For Ubiquitous Iris Scanning

Steve Watson
Infowars.com
February 2, 2011

Place eyes here for secure entry citizen
The impending expiration of a key technology patent is paving the way for a scramble amongst scores of biometrics research and development companies, all desperate to make their own brand of iris scanning technology commonplace, effectively creating a real life Minority Report society, where everyone is linked into an identification database.

As detailed in a Bloomberg News report today, the patent for recording the unique characteristics of the Iris as a form of identification was granted to two eye doctors in 1987, who then approached a Cambridge University professor to develop a way of automating iris identification. That further patent was granted in 1994, but it expires this year, opening a door for a slew of technological nightmares to come pouring through.

Leading marketing companies believe that within the next five years, iris recognition technology will create over $2 billion in revenue by becoming a routine part of everyday life.

The technology is already being used for screening employees of Bank of America, travelers at London’s Heathrow Airport and New York City prisoners.

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'Egypt 'color revolt' globalist agenda, Mubarak to sit tight'

RussiaToday | February 01, 2011

 

Amid ongoing violence in Egypt, political analysts all over the world try to predict whether Mohhamed ElBaradei could be a compromise leader and finally oust President Mubarak. Author and blogger Henry Makow says the US has its own interests in supporting ElBaradei.

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Neocons Exploit Fear of Muslim Brotherhood to Push War

Kurt Nimmo
Infowars.com
February 1, 2011

Former semi-ambassador to the United Nations, John Bolton, has told Sean Hannity the Egyptian rebellion against the authoritarian dictator Hosni Mubarak should be used as a pretext to bomb Iran.



“Do you think that the Israelis are going to have to strike — they are going to have to take action?” Sean Hannity asked Bolton on his radio program Monday. “”As you pointed out, ElBaradei ran cover for the Iranians for all those years that he was with the IAEA. And, I just don’t think the Israelis have much longer to wait… they’re going to have to act in fairly short order.”

“I think that’s right,” Bolton said. “I don’t think there’s much time to act. And I think the fall of a Egyptian government committed to the peace agreement will almost certainly speed that timetable up.”

Last week Bolton said “the real alternative is not Jefferson democracy versus the Mubarak regime, but that it’s the Muslim Brotherhood versus the Mubarak regime, and that has enormous implications for the US, for Israel, and our other friends in the region.”

The corporate media – and especially the concurrent neocon media – are now portraying the Muslim Brotherhood as a scary and threatening apparition poised to implement sharia law across the region and kill infidels.

“If the Obama administration decides to go along with the ascendancy of the Muslim Brotherhood under the guise of a ‘peoples’ coalition government, it will be pursuing yet another lethal engagement in its pursuit of approval in the Muslim world,” writes Joseph Klein.

“The Mubarak dictatorship is crumbling, the Muslim Brotherhood is warning that regimes will fall all over the Middle East and the radical left in America and internationally is cheering them on,” writes David Horowitz, the former Marxist turned neocon connected to CIA operative Richard Mellon Scaife.

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Health Judge Uses Obama's Words Against Him

Newsmax.com

Tuesday, 01 Feb 2011 09:19 AM

 

In ruling against President Obama‘s health care law, federal Judge Roger Vinson used Mr. Obama‘s own position from the 2008 campaign against him, when the then-Illinois senator argued there were other ways to achieve reform short of requiring every American to purchase insurance.

“I note that in 2008, then-Senator Obama supported a health care reform proposal that did not include an individual mandate because he was at that time strongly opposed to the idea, stating that, ‘If a mandate was the solution, we can try that to solve homelessness by mandating everybody to buy a house,’” Judge Vinson wrote in a footnote toward the end of his 78-page ruling Monday.

Judge Vinson, a federal judge in the northern district of Florida, struck down the entire health care law as unconstitutional on Monday, though he is allowing the Obama administration to continue to implement and enforce it while the government appeals his ruling.

The footnote was attached to the most critical part of Judge Vinson‘s ruling, in which he said the “principal dispute” in the case was not whether Congress has the power to tackle health care, but rather whether it has the power to compel individual citizens to purchase insurance.

Judge Vinson cited Mr. Obama‘s campaign words from an interview with CNN to show that there are other options that could pass constitutional muster including then-candidate Obama‘s plan.

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