From a housing crash blog:


Folks, you must, I repeat, YOU MUST, not only read this paper on the US housing and mortgage meltdown from Dean Baker and the CEPR, but you must print it out or send it to anyone and everyone you care about. You owe it to yourself to read the whole report, two or three times if you need to.

Yes, some people still won't get it. Some people will refuse to listen. Some are corrupt and don't want the truth getting out. And many folks out there are just too dense to understand (supply? demand? huh?). But at least you will have tried. And you will have prepared.

Here's some of the key points from this paper - the most well written, thorough, explanatory and shocking expose I've ever seen on the US housing bubble and crash - and just think, this cancer will spread around the world... Get ready.

* Total loss of wealth with the collapse of the housing bubble and stock market will be $8 Trillion to $12.5 Trillion (or more if the crash overshoots)

* Real economists who were warning about the bubble were ignored by the MSM in favor of fake economists at NAR and NAHB

* There is no factor of supply and demand that led to an $8 Trillion housing bubble - and no increase in rents to justify it.

* Inventory of unsold homes is 50% above the previous record - and the inventory of vacant units for sale is more than 100% higher than the previous record, while rental vacancy rate for owned units is soaring

* Homeowners are not prepared for a sharp drop in housing prices - and will enjoy a much less comfortable retirement than they had anticipated

* Median Price reports during the meltdown will be deceiving, as mortgage meltdown decimates the affordable home buyer pool, skewing median purchase price in favor of more expensive homes - Case Shiller index only good gauge available

* Very severe recession coming, pension shortfalls, and annual consumption drops of $415 Billion to $950 Billion