Comments on: US Home prices down 16% over last year http://www.creditwritedowns.com/2008/09/us-home-prices-down-16-over-last-year.html Finance, Economics and Markets Fri, 10 Feb 2012 00:37:00 +0000 hourly 1 By: Mike Russ http://www.creditwritedowns.com/2008/09/us-home-prices-down-16-over-last-year.html#comment-56400 Mike Russ Mon, 11 May 2009 21:55:00 +0000 http://www.creditwritedowns.com/2008/09/us-home-prices-down-16-over-last-year.html#comment-56400 Even though home write downs have deaccelerated it does not mean it is over. The wave cycles of the economy can cause this even if the general trend is down. Which it is. The key to stabilizing home values is jobs, jobs and more jobs at a decent wage. Case in point. Detroit. When the area had jobs from the auto industry home values went up. When the auto industry went belly up. Low and behold, a ghost town. The absence of jobs and decent wages is the difference between a recession and a depression. Not the GDP. Look at the charts from 1929. You will see the GDP recovered but not the employment picture and not the economic state of the US. Everything is attached to jobs. Including home values. As long as there are no jobs the US will decline economically. Wall Street is an entity on its own. If thats what your looking at. The wealth of the people of the US is in jobs. Stabilize home values are dependent upon jobs. Our problems are deep seated in policies like NAFTA and open immigration. Even though home write downs have deaccelerated it does not mean it is over. The wave cycles of the economy can cause this even if the general trend is down. Which it is.

The key to stabilizing home values is jobs, jobs and more jobs at a decent wage. Case in point. Detroit. When the area had jobs from the auto industry home values went up. When the auto industry went belly up.
Low and behold, a ghost town. The absence of jobs and decent wages
is the difference between a recession and a depression. Not the GDP.
Look at the charts from 1929. You will see the GDP recovered but not
the employment picture and not the economic state of the US. Everything is attached to jobs. Including home values. As long as there are no jobs the US will decline economically. Wall Street is an entity on its own. If thats what your looking at. The wealth of the people of the US is in jobs. Stabilize home values are dependent upon jobs. Our problems are deep seated in policies like NAFTA and open immigration.

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