Ally Report: Double Dip in Housing Prices Predicted

Tuesday, March 30, 2010

Double Dip in Housing Prices Predicted

TUESDAY, MARCH 30, 2010

Government Housing Support Update

by CalculatedRisk on 3/30/2010 06:03:00 PM

One of the key questions is: Will house prices fall as the government support for housing eases? From CNBC: Housing Prices May Be Heading for a Double Dip

Anyone thinking housing prices have reached a bottom had better do some recalculating. Despite Tuesday's Case Schiller report showing smaller declines in January, housing prices may already be in another free fall.

Newly revised numbers are pointing to the decline.

The Federal Housing Finance Agency's (FHFA) adjusted figures show a housing price decline of 2 percent in December and 0.6 percent decline in January—reversing some regional price increases in 2009.

And more pricing dips are predicted.

Few people use the FHFA index anymore, but I do think prices will fall further in many areas. And I think the key housing price indexes, Case-Shiller and First American CoreLogic, have not bottomed yet - although it is possible.

Right now the Case-Shiller composite 10 index is 4.4% above the bottom of May 2009 (seasonally adjusted), and CoreLogic's index is 3.5% above the bottom of March 2009 (NSA), so it will not take much of a decline to see new post-bubble lows.

Last year I listed some of the temporary Government housing support programs (as opposed to permanent programs like tax breaks). This included:

read on http://www.calculatedriskblog.com/2010/03/government-housing-support-update.html

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Free Competition in Currency Act of 2009

What the controllers want is clear... more state power, the IMF calls for a world currency. More Central control, more state currency. What we need is a range of free market currencies all backed by metals like gold and silver. The competition would reduce volatility and keep prices in check for consumers. Currencies could even partner with retailers to further push down prices. With electronic banking collecting a number of different currencies would be easy and shrewd shoppers could save a bundle. Doing this would restore trust and balance in the market, limit the imperial aspirations of governments, and eliminate inflation.

Of course no one would force you to use these monies, and the Federal Reserve notes would still be in circulation. But without a gold backing, the fed note, would go the way of the dodo... never to be seen again. What we need is a range of free market currencies all backed by metals like gold and silver and The Competition in Currency Act would do just that>! The idea of a free market solution for currency, in order to fix the problems of inflation and volatility is the most important move to turn our economy around for the long term.

So i checked Opencongress.org and looked at H.R 4248. It does not surprise me that Ron Paul is the author of this bill. For a number of years he has owned a virtual monopoly on economic common sense in the house. It is because he believes in YOU. He believes in your freedom, to run the micro-economy, and come up with local solutions. Because the the real debate that washington does not want to have, is the debate over central or federal control versus competition and local control. Put the power of the economy in the hands of the savers, so that it might better serve job creation and community investment for long term projects. Projects like energy and schools, basically, the overall collectively used infrastructure. All of which are highly profitable and create the lifetime employment sought after by many americans. Ron Paul knows that if you incentivize savings americans will save. You cannot have capitalism without capital... people. Let me say it again for the people that drank fluoride as a kid like me... You cannot have capitalism without capital... people. For many years americans have not saved because our consumer based economy, created out of fiat money, does not incentivize saving. Inflation, the real kind, which include things like, energy costs, housing, insurance, taxes, education, and health care dramatically increases. When money is worth less year after year, saving is even harder and even less desirable to do. Making socialistic ideals the false solution to the manufactured problem of "global economic collapse".

A range of currencies would solve these problems, first, the inflation problem. If you make a dollar redeemable for gold, silver, or really anything of value one can eliminate inflation. Its really that easy. It is said that someone can buy a nice suit today with the same amount of gold that a roman could buy... well, a toga, or whatever the fuck a roman would wear. The reason inflation affects education and health care so much more than other parts of the economy is because of the fiat government money that floods these systems. If inflation is a hose and money is water, and government decides where it floods, the effects of inflation are easier to see.

Second, volatility... what is it>? and how can free market currencies help>? A volatile market is one with violent shifts in prices. Seemingly unpredictable ups and downs, which benefit speculators at the expense of workers and savers. Contrary to mainstream belief, money that disappears on wall street does not go to money heaven. No, instead it goes in to the hands of a few speculative investors in the form of bonuses or to pay your elected representatives for favors in washington. These speculators, like goldman sacs, have taken over much of the economy and convinced the administration, congress and the american sheeple that what is in the best interest of a handful of banks is the best interest of the greater economy. The federal reserve note and the perverse incentives of short selling and derivatives that are linked to it cannot hold value with gold. Under a free market currency system it would not be long before this fraud would be eliminated. Problem solved not by regulation, but by giving the currency real value. If a currency was funding war I would choose not to support it. The fed reserve note has too much blood on it, meaning that to dump the dollar for an array of free market currencies would not only make economic sense, it would also be the right thing to do for peace around the world. In fact, I believe it is the most essential step to take for lasting peace to occur.

When the ability to create money is taken out of the hands of Fed speculators and put into the hands of gold prospectors the money supply will not support zombie capitalism, where fiat money is handed out to non-productive... in fact, destructive parts of the economy, like bonuses... but especially war. A redeemable money will mean that people will save... and only invest in those things which create long term returns. The type of investment that creates good jobs which create good products that raise everyones standard of living. The incentives that make capitalism great will be returned and a new economy will be forged out of the lessons of the old. Revolutions have been fought to take this very power and all we have to do is summon ourselves, will what is left of this Republic and pass this legislation.

_your Ally

Why a New 911 investigation is more Important than ever

After the numerous and eronious incursions on liberties and freedom and the masssive increases in anti-terrorism related budgets, is it no surprise that the federal government fails to prevent violent attacks. And is it also no surprise that after such attacks the same inept bunch are granted more power. Mathematics can easily show fearing terrorism is about as silly as fearing petting zoo attacks. Did you know that during the 7/7 London train bombing government agents were running a war game>? The war game mirrored the atttack almost exactly. What are the odds>? The National Security Administration has 250,000 emloyees and 6 Gs of phone data per american, according to Frontline. The Patriot Act, body scanners, warrantless wiretapeing, cell phone tracking technology, google, license plate scanners, TSA, literally hundreds of thousands of people yet the Christmas day bomber can get on a plane without a passport or visa>?

The root of our all these problems is 9-11. From destruction of the bill of rights to the repressive take over of the web all have the same pretext... terrorism... 9-11. It is clear the majority of americans have questions about 9-11, almost all of which can be answered by a real investigation. Holding people accountable for the failings of these attacks is key to preventing them. People in the government are at the very least negligent in regards to the attacks on 9-11, they could very well could be criminal. Secrets are repugnant, their stench is choking our country as it slips into pure fascism.

Your Ally

For as long as I can remember the suspicion of authority has driven me, providing a thirst for knowledge. I don't trust the notion that someone else can decide for me, for example this collective we call america, if I disagree with it, I should have the right to say, “NO... I will not pay for it... I refuse... I don't want to pay for war... or political favors...” I don't trust those in power, I intend to expose them. If you use a gun to get your way, you are my ideological foe. That means I do not support the following institutions: The Federal Reserve, IRS, NSA, CIA, FBI, NIST, FEMA, etc. Without the power to say “NO”, you are not free.

I see a new vision, a world free of controllers, where there are many choices for currencies, energy is off the grid and practically free, where people go to work building meaningful products that raise our standard of living. People, when given the option to solve their problems with a gun, loose the opportunity to solve them by other means. Problems solved at gunpoint sow the seeds for their own eventual destruction. Yes, the economy is collapsing... but why>? I would argue it is because the current system has no moral authority, which is essential if one has principles. The government collects tax at gunpoint, if you decide to say “NO”, they will arrest you, seize your property, and confine you in a rape room. America listen up... the IRS are the strong arm thugs of the IMF, World Bank. Fact: your income tax dollars do not pay for any services directly... instead the funds go to the interest on the debt, much of which is overseas. Yes, the economy is collapsing... and we know why... because the economy is immoral, it rewards speculation and short term gain while punishing savings and prudent foresight. This is evil. Plainly stealing from the people that work hard providing the goods and services we all enjoy.

What the controllers want is clear... more state power, the IMF calls for a world currency. More Central control, more state currency. What we need is a range of free market currencies all backed by metals like gold and silver. The competition would reduce volatility and keep prices in check for consumers. Currencies could even partner with retailers to further push down prices. With electronic banking collecting a number of different currencies would be easy and shrewd shoppers could save a bundle. Doing this would restore trust and balance in the market, limit the imperial aspirations of governments, and eliminate inflation. Of course no one would force you to use these monies, and the Federal Reserve notes would still be in circulation. But without a gold backing the fed note would go the way of the dodo, never to be seen again.

_your Ally