Zillow Advice: Home Buying - Beware Real Estate False Bottoms

Edit:As an aside the $2 trillion ...

Sat, 06 Jun 2009 17:41:00 GMT

Edit:

As an aside the $2 trillion is homes already foreclosed. Does not inlcude value of homes in process

Kind Regards

There is not enough cash ...

Sat, 06 Jun 2009 17:38:00 GMT

There is not enough cash in the US to both A. buy all the government debt being floated, and B. buy all the homes going into foreclosure.

While technically true, its actually close. From Page 102 of the most recent Flow of funds report (Z.1 report from the federal reserve) as of March 31, 2009 total Deposits outstanding held by US residents equalled 7.6 trillion - add the 100 million or so treasury holdings to that you get 7.7 trillion of cash (i treat treasury holdings as if they were cash)

Total debt outstanding held by non-affiliates is currently 5.99 tillion with foreclosures approximating 2 trillion currently - it comes out just north of total cash on hand

Regards

I posted this in another ...

Sat, 06 Jun 2009 15:18:00 GMT

I posted this in another thread but it's relevant here too: http://jeffmatthewsisnotmakingthisup.blogspot.com/

Sir Mix A Lot might have ...

Sat, 06 Jun 2009 02:33:00 GMT

Sir Mix A Lot might have something to say about false bottoms. Â

Essentially, everything is ...

Sat, 06 Jun 2009 01:56:00 GMT

Essentially, everything is artificial and so should the bottom that comes out of it.

Beautiful, just perfectly said.

There is not enough cash ...

Sat, 06 Jun 2009 01:01:00 GMT

There is not enough cash in the US to both A. buy all the government debt being floated, and B. buy all the homes going into foreclosure. Something has to give! Rates up? Prices down? I vote both!

We'll know the bottom after ...

Fri, 05 Jun 2009 23:53:00 GMT

We'll know the bottom after the fact. If any of the people preaching to buy now based on lower rates they won't have that arguement to help them soon, my opinion. What would cause rates to settle down? Definitely not our banking system printing money like there's any fundamentals there to back it up. Can the U.S. produce more and provide more services that create jobs in the near future?

It's a truly false bottom, ...

Fri, 05 Jun 2009 23:42:00 GMT

It's a truly false bottom, especially in Northern CA.

http://www.boston.com/realestate/news/blogs/renow/2009/06/a_foreclosure_f.html