Wake Up Call - Real Estate 2: Time To Abandon Ship - 02/21/14

The Wake Up Call show

Summary: There is simply no economic support for organic growth in the real estate market. The economy is as moribund as it was four years ago. 57 out of 110 economists believe investors will resell their real estate portfolios “in the next three to five years”. Demand for housing has never been weaker. Zero interest rates, courtesy of the Fed, have merely induced leveraged speculation. There has been a 58% drop in household growth compared with 2012. Home buyers are simply not in evidence. Crushing student loans have taken care of first-time home buyers. Household debt is sharply higher, up by $241 billion in the latest quarter. Inventories are growing again, as well. Stock market P/E is currently at 25 versus an average of 16.5, going back to 1870. More on consumer spending. The U.S. is behind the Ukraine riots, having “invested” $5 billion to achieve U.S. “goals”, according to Assistant Secretary of State, Victoria Nuland. Oil extraction in North Dakota, a success story, for a change