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Amerikan home prices falls in September... [Copy link] 中文

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Post time 2006-9-25 11:25:22 |Display all floors
...ever since the shortages of crude oil caused by
(1) supply disruptions in the USA...
(2) Increase crude oil purchase by China and the New Middle Kingdom...

....crude oil price has increased from US$60 a barrel to closer to US$80 from Jan to August 2006!......

the price rise HIT tha Amerikan Consumer in July...
and HOME UNSOLD STOCK hit 4.6 million in July.....

By September, reports are filtering of home sales price slump by as much as 10%!!!!

this spells problems in the HOME MORTGAGE in the USA!!!!
There is an estimated mortgage totalling US$7 trillion at present!

The HOUSING STOCK in the USA is worth some US$20 trillion....a drop of 10% in housing value will wipe out US$2 trillion from the Amerikan Economy!!!!

This will make Amerikan "feel poorer"....and by Jan 2007, Amerikan banks might be doing "evaluation" on the MORTGAGE coverage..and we might have a CRISIS that hit HONG KONG post 1997!!!!

We ADVICE THE AMERIKAN GOVERNMENT to FIGHT THE FIRE! It has to stop the banks from foreclosing on the housing!





Green Dragon
Economic Analyst

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Post time 2006-9-25 11:31:07 |Display all floors

There will be "forced sales" in Amerikan homes by July 2007...

....right through July 2008 as the creaky Amerikan Judical process work with the foreclosure of people unable to support mortgages due to lower income, or unemployment....

Price fall could be excerbarted and increase to 20-30% quantum...

So, i suggest that some kind of FUND be set up to absorbed the foreclosed property and prevent a COLLAPSE of the Amerikan Housing market!!!!!

As the USA economy depends about 22% (GNP) on the New Housing and its ancillary business.....we will expect a RECESSION by June 2007!



China and the New Middle Kingdom should be PRIME PUMPING by early next year to forestall the expected small drop in imports. Japan, Korea, Singapore and Taiwan will be hardest hit as the higher value durables and consumable are exported from those countries.

Increased imports from China should be able to solve these bleep!


the Amerikan Cold......should not be contagious to rest of the NEW MIDDLE KINGDOM!


Green Dragon
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[ Last edited by greendragon at 2006-9-25 11:33 AM ]

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Post time 2006-9-26 00:42:19 |Display all floors

greendragon, your are no economist!

greendragon:

When you provide a post promoting your opinion about how bad America, and life in America is, PLEASE try to back up you comments with facts.  Your fairy-tale is nearly as absurd as the rewritten history of mainland China portraying Mao as a hero during the Cultural Revolution.

American home sales have fallen because the Federal Reserve bank have slowly raised interest rates in hopes of controlling inflation.  Bank loans for home mortgages were cheaper in the past decade than for nearly 25 years before.  Many people took advantage by buying new homes.  Now the cost to buy a new house is up, and demand has dropped.

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Post time 2006-9-26 11:12:01 |Display all floors

Reply #3 nosferatu's post

Thank you for your "additional data"....

"and yes, interest rate increase by the Central Bank of the Amerikan Regime due to "slumping dollar" in the February to July period, cause Amerikan Regime to raise INTEREST RATES to a HIGH OF 5 1/2%.  This is close to disaster for an economy stiffled by high DEBT BURDENs.

Investors are advised to be careful on FANNIE MAE and its cousin yields, default rates.....


An independent ECONOMIST, Mr. Pang of the Malayan Institute of Economic affairs suggest that Amerikan POVERTY RATE increased in 2006...from 12% to almost 16 - 20%, almost singlehandledly caused by CRUDE OIL price rises.

As a result CRIME RATE increased in the United States! (States Mr. Pang, without citing references) Unemployment also rose as a result of CRUDE OIL price rises and Mortgage and transport increased tremendously.


thank you Mr. Nosferatu!


Green Dragon
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Post time 2006-9-27 00:37:16 |Display all floors

Reply #4, greendragon's post

Correction to your statements:

The interest rates are not increased by the US Federal Reserve when the economy is 'slumping' and demand is low or down.  Interest rates are decreased in this situation, which is why the rates were dropped to record lows after the 9/11 terrorist act.

You should probably cease you attacks against an economic system you have so little knowledge of.

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Post time 2006-9-27 07:48:40 |Display all floors

Greendragon is Wrong . . .

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Post time 2006-9-27 08:03:01 |Display all floors

Wrong Again

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