It’s All About Housing
The housing data is making more believers in the idea of a double-dip and I’m even seeing the dreaded D-word mentioned (depression) around the web and on television. Housing is a mess and it is clear that the government tax credit did nothing to solve long-term issues. We’ve stated this plenty of times, but the reality is that housing will not find a bottom until there is an equilibrium between buyers and sellers. Since we did everything possible for decades to artificially boost the buyers of homes in this country, we have a long way to go. There are no new buyers. July housing numbers reflected this reality where sales of existing homes and new homes were at multi-year lows.
Unfortunately, our leaders are still considering the same things that got us in this mess. Bill Gross of PIMCO (the largest bond fund company) is pushing Congress to ease the lending standards to make more people be able to get homes. I mean I read that and I want to throw up. Obviously, this is what got us into this mess. We all know this. But, the fact that this is even being considering and getting air time is atrocious.
This guy is spewing complete nonsense because his firm will benefit by the government continuing this unsustainable game in the world of housing. When everything comes crashing down, this guy might want to find a good place to hide as lots of pissed off people will be looking for someone to blame.
FYI: Gold is over $1240/oz.