Double-Dip Recession Deepens as U.S. Housing Market Collapses
By: Mike Larson
Sep 03, 2010
The Double-Dip recession I’ve been predicting for some time is deepening. And nowhere is the emergence of this powerful economic force more clear than in the housing market.
All the fresh economic data confirms that home sales are weakening … home inventories are rising … and home price pressure is building.
Meanwhile, we’re seeing a fresh rise in early-stage mortgage delinquencies after a multi-quarter respite. Credit demand is contracting for real estate and other loans. And bank failures are rising fast.
This can’t be prevented. Neither the Obama administration nor Congress nor the Federal Reserve can fire some magic bullet at the problem to kill it. So as an investor, you can only do one thing: Prepare!
Housing Dip Deepens As Artificial Support Wanes
Last week while I was on vacation, we got a rash of fresh data on housing — none of it pretty. Just consider …
New home sales plunged 12 percent in July to a seasonally adjusted annual rate of only 276,000. That’s the lowest level since the Census Bureau began tracking these figures in 1963.