Dr. Housing Bubble 9/10/08

California Housing Report: Southern California Inventory Dropping but Foreclosures Keep Coming. Los Angeles and Orange Counties Plagued with Problems.

Housing is nowhere near a bottom. Housing is nowhere near a bottom. Did you get that? The lovely media spin machine has been digesting recent reports from housing pundits about the decline in overall inventory. The pundit’s explanation is simple. Inventory is going down because sales are increasing therefore things are fantastic! This not only misses the entire scope of the problem but also is misleading to the public. It would be nice if the media talked about some of the 10 reasons housing will not bottom out in California until May of 2011 with little economic factors such as unemployment, REOs, shady lenders, and other factors but why pay attention to that right? Housing in California is in the shambles and will remain this way for many years.

Remember that mighty Fannie Mae and Freddie Mac bailout? You know, the one that put the taxpayer at risk for beacoup money and was suppose to stabilize the market? Well after a 286 point DOW rally on Monday the DOW un-rallied by nearly 280 points on Tuesday. The largest bailout in the history of our nation and it only gave the market a one-day rally! Bwahahaha. I’m sorry folks, this crony capitalistic bailout was aimed at a very select few people and at what point do you simply stop believing that “too big to fail” mantra? Let us do a quick recap:

http://www.doctorhousingbubble.com/california-housing-report-southern-california-inventory-dropping-but-foreclosures-keep-coming-los-angeles-and-orange-counties-plagued-with-problems/

"Now might be a good time to buy a house!" They hedged their asses off. "Housing prices might not be at their absolute lowest yet, but you don't want to wait too long and miss these prices!"

Or some such baloney.