Wednesday, January 12, 2011

Housing and Economy: Housing Market Slips Into Depression Territory - CNBC

Housing and Economy: Housing Market Slips Into Depression Territory - CNBC:
Home values have fallen 26 percent since their peak in June 2006, worse than the 25.9-percent decline seen during the Depression years between 1928 and 1933, Zillow reported. November marked the 53rd consecutive month (4 ½ years) that home values have fallen. What’s worse, it’s not over yet: Home values are expected to continue to slide as inventories pile up, and likely won't recover until the job market improves.
And in other news, the Democrats who control the Illinois state legislature just raised the state income tax by 67%, corporate taxes by over 40%, and continued their 8 year refusal to address their over-spending.

This is the first of many state and local tax increases to come. California and other big states are going to jack up taxes.

How anybody can talk about economic recovery now is just beyond me. The housing market is still deteriorating, unemployment remains high, and the crisis state of government financing at all levels is getting worse.

1 comment:

Fred Pilot said...

I understand real estate has a huge multiplier effect in the economy. But it's not the entire economy but rather one segment. To have one segment practically take down the entire economy and threaten general deflation would seem to suggest our economy is not sufficiently diversified and has grown too dependent on the real estate sector.