Home resales fell in December to lowest in twenty years – the housing depressing is nastier than worst real estate bear can think of – but is the bottom in sight?
Peter Oberois
Jan. 21, 2008

The home resales data will show the lowest home sales ever. Purchases fell 1.3 percent last month to a 4.82 million rate, the fewest since comparable records began in 1999. According to some residential real estate analysts, the data shows real estate depression has reached levels never seen before since the time of Great Depression.

However, whenever there is a cataclysmic sell off in any investment asset type. A local bottom shows up. Some real estate bears that started predicting real estate bear market three years back during the bubble time under Alan Greensopan are now turning bullish for the short term. According to them it is possible that the $150 billion stimulus package will go directly to homebuyers to influence them to gram a decent home for their residence. That can help home prices and stabilize the residential real estate prices from an ongoing free fall.

However, real estate is not like stock market. It is a bigger ship that takes a considerable time to turn its direction. The boom is housing market may come much later or may not even come ever in the next thirty years.

According to some analysts, some thing interesting is going to happen in the next several months. The shortage of materials will force builders to stop building. The prices of lumber and other materials can quadruple over the next several months. The new home prices may go up sharply with fewer inventories in the market. At the same time the older homes can continue its free fall taking the economy with it.

Home resales fell in December to lowest in twenty years – the housing depressing is nastier than worst real estate bear can think of – but is the bottom in sight?
Peter Oberois
The new home prices may go up sharply with fewer inventories in the market. At the same time the older homes can continue its free fall taking the economy with it.
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Toyota leads Asian equities dfecline to lowest in five months – weak American economy creating a free fall scenario for Asia
Kirsten McLauren
According to some analysts the liquidity in Asia can dry up very fast. As the American finacial institutions start pulling rug under the feet, these economies and their satellite operations can tumble very fast.
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US depression drags Europe to a deep recession – ECB predicts massive slowdown – Euro falls sharply against Yen
Kara Zeilig
The European central bank finally confessed the recession. The euro fell to a four-month low against the yen after European Central Bank council member Nout Wellink said economic growth may slow more than expected.
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Japan confirms deflation and recession as Japanese machinery orders fell in November as companies pared spending in anticipation of U.S. slowdown
Sandra Simons
Japanese machine orders declined 2.8 percent from October, when they rose 12.7 percent. This is very significant. The rally in Japanese Yen, lower consumer confidence and lower business enthusiasm is alarming.
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Asian stocks in sharp decline taking clue from Wall Street – world races towards depression and hyperinflation
Kartik Punaskar
The global hyperinflation is happening in the area of commodities. The falling dollar is the culprit. The sectors of hyperinflation make it almost impossible for central banks to pull the economies out of depression or recession.
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