Media Appearance: The Kudlow Report (6/22/10)
By Barry Ritholtz - June 22nd, 2010, 6:45PM
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Tonight, I will be on the Kudlow Report at about 7:20pm to discuss the next leg down in Housing. As noted earlier today, Housing data was weak, falling 2.2% from April. And now that the Tax incentive is over, expect more downwards pressure.
The 3 most important things to note about Housing:
1. Prices remain historically elevated;
2. Shadow inventory — flippers and investor purchased homes — still lurk out there by the millions;
3. We are likely looking at another 5 million more Foreclosures . . .
As I have argued in the past, this will be healthy, cleansing thing. Painful, but ultimately healthy.
I don’t think I have been on the show since October 2009.
~~~
Video is here
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June 22nd, 2010 at 7:45 pm
I’m sure many readers here agree with the fact that US real estate prices are artificially high – and hopefully sitting patient for their opportunity.
As a Canadian, however, I am sitting back and waiting on an additional factor to coincide with falling US real estate prices – a surging Canadian Dollar. The combination of these two factors over the next 12 – 30 months will give Canadians an opportunity to acquire prime real estate at prices we haven’t been able to dream about in decades.
Moreover, we Canadians deserve any such opportunity. As Barry says here http://www.ritholtz.com/blog/2010/03/more-foreclosures-please/ we should be rewarded for our banking and credit prudence.
Curious to hear if any other Canadians share my views on US real estate.
Regards,
George
June 22nd, 2010 at 7:48 pm
That’s (housing) Gary Shilling’s turf. Larry used to introduce Gary in 2006-2007 by playing the video clip from “The Wizard of Oz” where the house is in freefall during a tremendous storm. I wonder whether Larry ever gave Gary a ‘mea culpa’ by showing the clip where the house has squashed the witch, with the witch representing assorted interests who blew the housing bust call?
June 22nd, 2010 at 7:52 pm
George, if you read Michael Shedlock’s (aka “Mish”) blog, he has covered housing prices in Vancouver, B.C. Mish believes the explanation for Canadian banks remaining healthy is due to all (or is it all problem loans) loans being shipped to the Canadian Central Bank. Is there an agressive media reporting/investigative television program in Canada the equivalent of a “60 Minutes” here? If so, they may want to look into the balance sheet of the Canadian Central Bank.
June 22nd, 2010 at 7:55 pm
“…As I have argued in the past, this will be healthy, cleansing thing. Painful, but ultimately healthy…”
Same for job losses at companies that don’t make things that people want, or do so efficiently. Same for companies themselves. Same for personal BKs for people who can’t support their debt loads. In fact, the same for just about everything in a capitalist model, except our skills, which we all must replenish. It’s called education, and we need it for everyone, not just some, unless you want uneducated people manning our economy.
…reminding you there’s one Education Party. And making me pay so someone else’s kid can go pray in school is about as effective as the other party’s claim that an emotional decision maker can repair an industrial accident. It takes technology, which takes education.
June 22nd, 2010 at 8:41 pm
@ Tomahawk,
You are correct. Canadians have constantly been told their banks weren’t bailed out. Nonsense.
http://thechronicleherald.ca/Opinion/1188139.html
June 22nd, 2010 at 9:22 pm
Don’t forget. Extra brownie points for asking Kudlow how that “Bush Boom” is treating him!
June 22nd, 2010 at 9:32 pm
Kudlow is such an idiot. Unbiased, Actionable, Bah. The only one worse is klown Kernan. Given Kudlow’s predefined positions, BR won’t be seen again on that show until next year, if then.
June 22nd, 2010 at 10:06 pm
Excellent appearance, Barry. It’s about time that they had you back on. They are doing too much news on that show now. I hate when they have reporters on who just repeat the same stories that they did during the day. Such a waste of time.
June 22nd, 2010 at 10:38 pm
Barry,
isn’t the plunge in mortgage rates a tax cut in itself?.
June 22nd, 2010 at 11:14 pm
Barry, thanks for telling the truth.
That makes you one of the good guys.
June 22nd, 2010 at 11:37 pm
Have to admit. The charts on anything housing makes me want to buy those stocks. I’m not. But I am watching them. I don’t understand how Barry has been bullish on BP yet bearish on homebuilders.
June 23rd, 2010 at 1:07 am
I watched the video a few hours after the show aired. BR provided useful info for investors. But is Kudlow finally changing his ways: no longer ranting about needing a strong dollar and even sounding cautious about equity markets in the short/mid-term? Is he actually paying attention to evidence and doing some sound analysis now, instead of firing off wacky right wing diatribes? Maybe we should not expect too much since he has no formal qualifications in economics or financial services; just a BA in History and an uncompleted graduate degree in political economy.
As for his other contribution to Financial TV: the Nut and Candy Show, aka the Call, I see Francis has returned so the ‘Gosh-Golly Candy Duo’ is back in action and Drury can escape back to doing some credible anchor work.
June 23rd, 2010 at 1:13 am
needing a strong dollar and even sounding cautious about equity markets in he actually paying attention to evidence and doing some sound analysis now, instead of firing off wacky right wing diatribes? Maybe we should not expect too much since he has no formal qualifications in economics
June 23rd, 2010 at 8:37 am
Love ‘ya Barry, but can’t stand Kudlow, so can’t/won’t see you this time.
TBP is the greatest!
June 23rd, 2010 at 10:57 am
Finally got a chance to watch the clip (link wasn’t functioning last night.) First, it was good to have the segment limited to two guests, which allowed for more content to flow. Second, Larry restrained himself from talking over and interrupting, which was good (well at least for BR, poor Michael Pento drooped his head several times when Larry did it too him.)