The $3,200,000,000,000 Question: Why Housing Has Much More To Drop Before It Bottoms

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The chart is such reality check, that it's mind blowing, when viewed in the perception of unemployment.
That 3 trillion dollar difference that housing needs to come down, used to
jobs of the trades. Plumbers electricians, framers, flooring people, painters etc....
Damn that was depressing and what makes it more so is that they're pushing hard the "Unmanned Industry" which only makes for more jobs lost, in the unending direction of none made.

It is no secret that having failed repeatedly at the trickle down aspect of QE1, QE2, Op Twist 1, Op Twist 2 (and implicitly LTRO 1 and LTRO 2) as it pertains to the man in the street (if not the man in Wall Street, who was subject to 1-2 years of subpar bonuses which have since regained their upward trendline), the last effort the central planners of the world, and the administration, have is to furiously do everything in their power to reflate housing one more time, following what is already a triple dip in home prices ever since the December 2007 start of the Second Great Depression. Which is why month after month we get seasonally fudged, conflicted and outright manipulated data from various sources how housing has bottomed, for real this time, and things are finally looking up. Remember: with any con game, the key word is confidence, and the US consumers need to regain their confidence. Sadly, as the following very simple chart and accompanying explanation, the answer to the housing question is only one: there will be no housing recovery until much more debt is eliminated. $3.2 trillion to be precise. Everything else is merely fits and spurts of upward action predicated by easy money hitting the market either directly, or via the "REO-to-Rental" stimulus program du jour, which lasts for a few months then promptly evaporates.

The chart in question:

Why "We didn't know" doesn't work anymore

http://online.wsj.com/article/SB10001424052748703959104576082313921593064.html?mod=WSJ_RealEstate_LeftTopNews

Only after 5 years can the truth come out because that's how long it takes before you can see for yourself what the FED meetings are really all about.
Didn't America have the right to know before the banks were allowed to suck this country dry?


Federal Reserve officials acknowledged a housing-market bubble more than a year before U.S. house prices peaked, but they showed little inclination to address it, according to transcripts of their 2005 meetings released Friday.

Janet Yellen, then the San Francisco Fed president and now the Fed vice chairman, said at the June 2005 meeting that newer financing options, such as interest-only mortgages, were widely viewed as "feeding a kind of unsustainable bubble." But she suggested that higher prices themselves were "curtailing effective demand for housing at this point and that house appreciation probably is poised to slow. So the increasing use of creative financing could be a sign of the final gasps of house-price appreciation at the pace we've seen and an indication that a slowing is at hand."

Europe's bruised economies search for way forward

http://finance.yahoo.com/news/Europes-bruised-economies-apf-509572434.html?x=0&sec=topStories&pos=6&asset=&ccode=

People all over the world are asking this question.
Isn't it a coincidence they're all asking it at the same time?
And what do all of them have in common to have to make them ask such a question?
"The Banks"

After the boom, where does growth come from now?


The wreckage of Spain's economic growth model stands neatly aligned on the roads leading out of Madrid -- row after row of unsold houses, windows dark, for-sale signs out front.

Spain and other countries on Europe's financially stricken fringe are groping for a new basis from economic growth to put people to work and pay down crushing deficits and debts. In Spain's case, something to start generating jobs for 4 million unemployed people amid the rubble of an unsustainable construction and housing boom.

The question is especially urgent in countries with the eurozone's messiest public finances: Spain, Portugal, Ireland, and Greece.

Bernanke in Denial 2005-2007

http://www.youtube.com/watch?v=INmqvibv4UU

Do you really trust this man with more power.