Eight years ago, Yale superstar professor and MacroMarkets chief economist Robert Shiller famously called the top of the stock market in his book Irrational Exuberance. Then, a year before the housing bubble peaked, he predicted the colossal bust we are now experiencing. » U.S. House Price Decline Could Be Worse …
A senior banker in the UK says the economic turmoil gripping the world is at least as bad as that seen in the 1970s, and will drag on for considerable time. Charles Bean, the BoE Deputy Governor said “the downturn was at least as bad as the 1970s oil shock …
NEW YORK (MarketWatch) — U.S. stocks fell sharply Thursday with the blue-chip index enduring its worst June so far since 1930, and plunging to its lowest finish since Sept. 11, 2006, after getting slammed hard as crude soared to new highs and Goldman Sachs disparaged U.S. brokers and advised selling …
US house prices dropped 22.8 per cent over the last three months as American consumer confidence slumped. Wall Street economists described the statistics as “incredibly awful” and indicated that the likelihood of the US Federal Reserve raising interest rates tomorrow was very remote. However, the housing recession – which shows …
CHICAGO (MarketWatch) — The housing slump, already shaping up to be the worst in a generation, still hasn’t run its full course, according to Harvard University’s annual report on housing, released on Monday.And if job losses accelerate in coming months, it could take even longer for local markets to regain …
NEW YORK (AP) — U.S. home prices dropped at the sharpest rate in two decades during the first quarter, a closely watched index showed Tuesday. It’s a somber indication that the housing slump continues to deepen. Standard & Poor’s/Case-Shiller said its national home price index fell 14.1% in the first …
ROBERT Shiller, the Yale University economics professor who accurately predicted the top of the internet boom, said today there is a good chance that residential property prices will fall further than those sustained during the Great Depression, when home values fell by 30 per cent. » US home-price fall may …
Confidence among US consumers fell to a 26-year low after employers fired workers and petrol prices surged, threatening the spending that accounts for more than two-thirds of the economy. The Reuters/University of Michigan preliminary index of consumer sentiment decreased to 63.2 this month, the weakest level since 1982, when the …
Home prices in 20 major U.S. metro areas have plunged a record 10.7% in the past year as prices continued to decelerate, Standard & Poor’s said Tuesday. The 20-city Case-Shiller home price index fell a record 2.4% from December to January, the 18th consecutive decline in prices. For 10 major …
March 13 (Bloomberg) — U.S. home foreclosure filings jumped 60 percent and bank seizures more than doubled in February as rates on adjustable mortgages rose and property owners were unable to sell or refinance amid falling prices. More than 223,000 properties were in some stage of default, or 1 in …
The Australian and US economies are not chalk and cheese. They are both suffering the same inflation spike, the same fallout from the credit crunch, the same low levels of unemployment, and while the preliminary figure for US first quarter GDP growth is 0.6%, Australia’s is 0.8%. (The 2nd graph …
Long time readers of whocrashedtheeconomy.com will remember a post back on the 28th of April last year about the Herengracht Real Location Value Index created by Piet Eichholtz dating back 350 years. It tracked house prices on Amsterdam’s Herengracht canal and shows over the 350 years when corrected for inflation …
From U.S. recession to Global recession. . . The U.S. economy may already be in recession; other countries might not be far behind. Japan, Britain, Spain and Singapore, which together represent about 12 percent of the world economy, are vulnerable as fallout from the U.S. worsens their economic weakness. Even …
THE first real hint that something was wrong came in February last year. People started using the word “subprime” and talking about defaults in the US mortgage market. …. The long-proposed theory of ‘decoupling’ is also breaking down, and market watchers are less convinced the Australian economy can withstand a …
US and British house prices are falling. Australian house prices are still rising. Housing here is protected in the short term by strong Australian growth, but that will not last forever. …. Even so, the OECD suggested in 2005 that Australian house prices were the most overvalued of any developed …
As subprime takes center stage, there appears to be more trouble in the woods. As house prices spiraled to dizzy heights, home owners used the equity in their homes, or their homes as ATMs to buy other goods and services. This was achieved with a home-equity loan. Now as house …
“There is a clear and present danger of the world economy coming to a near standstill,” the UN’s Department of Economic and Social Affairs said in an analysis released today in New York. “The domino effect of a U.S. recession would be to knock down export growth from China, Europe …
A top bank says the feared recession in the United States economy has arrived. A report from Merrill Lynch, one of the world’s leading financial management and advisory companies, says Friday’s employment report confirmed that the US is in the first month of a recession. » US now in recession, …
The rising economies of Asia are too small and deformed to rescue world growth as America, Britain, Australia, and Club Med face their day of debt reckoning. China may make matters worse, not better. The seven pillars of global demand over the last year – measured by current account deficits …
The effect of the US housing crisis on Australia is still unclear and it will all depend on how deeply America and Europe are hit, a leading Australian businessman says. » US housing crisis on Australia ‘unclear’ – The Age, 3rd December 2007.
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