- Renown analyst, Meredith Whitney predicts home prices will go down more dramatically from here.
- Believes we still have another 25% more on the downside
- Less demand = supply = home prices go down further
- No bank underwrote the loan with 10% unemployment and its still rising.
- Over $7 trillion were underwritten with 6% unemployment assumptions
- No doubt that home prices go down, just a question of when.
- When government incentives get removed home prices will go down more again.
- Banks are not keeping a lot of mortgages on their own books, rather they are selling.
- Doesn’t see the driver for unemployment reversing anytime soon.
- Those who can afford credit are trying to trim down their debt
- Those who can’t afford credit are trying to get more credit in which they don’t have access to.
- Consumer debt has gone down dramatically.
- People spending more on credit card rather than debit card
- 80% of most household economic decisions are made by women
- Most housing regulators see 65% homeownership level.
Source: CNBC
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