John Sherffius has this terrific depiction of the next leg down in housing. (Sherffius contributed cartoons and did the cover of Bailout Nation):

Source: John Sherffius

Category: Bailout Nation, Real Estate

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

8 Responses to “Housing Roller Coaster”

  1. ancientone says:

    Great cartoon. Any report on the meeting with”regulators” yesterday?

  2. Nuggz says:

    And that, ladies and gentlemen, is the reason that QE 3, 4, 5, 6, 7, 8, 9… in your future.

    You can count on it.

  3. I was just thinking about the difference between the favored child (housing) and the red headed step child (silver) and how they were treated differently by the powers that be. Speculative froth entered both markets. They did nothing to stop housing’s build and bubble and when it did finally crash they did everything in their power to keep it up. Timing: many, many years.

    Silver, on the other hand, was showing the same speculative froth. In a few weeks they raised the margin requirements and in one week we saw a 30% crash. That is now done and over and silver is already on the recovery path with market players suffering violent price discovery.

    I’m not saying that if they had let hosing slide it would have taken weeks but it surely would not have taken this long.

    So now you know how a free(ish) market works and how a socialized market works

  4. KJ Foehr says:

    So what did the regulators have to say yesterday?

    I hate to be so cynical, but I have to agree with most of the comments made by others on the post yesterday. Two-thirds of our government has been largely co-opted by moneyed interests. The only way to get our power back is through grassroots action from the people (or possibly for another leader like TR to appear, but none is on the horizon.)

    But the people won’t get active on this issue because most of them are either apathetic, cynical, or have been brainwashed by those moneyed interests and their minions into believing the government is the cause and/or government debt is the threat to our republic rather than the TBTF corporations and oligarchs who have us and the government by the short hairs.

    Still I much applaud your efforts, and I certainly have not given up hope myself. But the task does seem overwhelming – now even the Supreme Court has turned against the people with its ruling on corporate political advertising.

    Relevant TR quotes,

    “This country has nothing to fear from the crooked man who fails. We put him in jail. It is the crooked man who succeeds who is a threat to this country.” — Memphis, TN, October 25, 1905

    “It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood, who strives valiantly; who errs and comes short again and again; because there is not effort without error and shortcomings; but who does actually strive to do the deed; who knows the great enthusiasm, the great devotion, who spends himself in a worthy cause, who at the best knows in the end the triumph of high achievement and who at the worst, if he fails, at least he fails while daring greatly. So that his place shall never be with those cold and timid souls who know neither victory nor defeat.” — “Citizenship in a Republic,” — Speech at the Sorbonne, Paris, April 23, 1910

    “We demand that big business give the people a square deal; in return we must insist that when anyone engaged in big business honestly endeavors to do right he shall himself be given a square deal.” — Letter to Sir Edward Gray, November 15, 1913

    “It is true of the Nation, as of the individual, that the greatest doer must also be a great dreamer.” –Berkeley, CA, 1911

  5. Nuggz says:

    @Mr. Foehr,

    The greatest dreamers were those individuals who thought that their way to prosperity was assest appreciation in the form of residential housing. In other words, 95 percent of America. And I can tell you, that isn’t going away anytime soon. We all know it and so does the government…Democratic or Republican.

  6. beaufou says:

    Well, some people make the same insane amount of money up or down by gambling at the right time.
    The World economies will be sick and the average citizen will suffer as long as this is allowed, the secondary market should be a closed circle where players can gamble at will with their own money and suffer the consequences of their mistakes.

  7. Ivana Puke says:

    Housing is a necessity.
    Like food, water, air, and sex it should be abundant and free.

  8. John says:


    The label on the vertical axis is wrong. It should be “Home Prices”, not “Home Values”.