Doom and Gloom?
In stark contrast to my rose-colored glasses story yesterday, here are the findings of an article printed the same day just dripping of gloom and doom. It is a report by the Mortgage Bankers Association. My fingers are crossed for a happier scenario, but it is only fair to show both sides of the coin.
The study states that 16-24 year olds and anyone that is planning retirement has been permanently effected by the economy and that the negative lasting effects will cause many to stay in the labor force until well past the age of 60-65 to rebuild some of the wealth that was wiped out during the recession.
It gets better…the study states that the current financial crisis and recession has exceeded the devastation created by other post-World War II recessions. Per the article, we’ll be seeing Americans continuing to cut spending sharply out of necessity and fear.
Loan delinquencies, foreclosures, and bankruptcies will not decrease, unemployment and low house prices are expected to stick around.
Michael Fratantoni, MBA’s VP of Research and Economics says, “The severity and duration of the most recent downturn far exceeds what we have experienced in past recessions and has resulted in the disruption of millions of lives. We can’t know for certain at this point, but it is more than reasonable to prepare for a world that has been irrvocably changed by this experience. ”
In conclusion, the MBA’s article is pointing at things getting worse. I feel that the negative publicity leads to fear and the fear leads to more troubled times.
If the next 5 years are full of cautious homebuyers, conservative lending, and hesitant businesses, that may be a good thing. At the end of the day, whether you are talking about the San Diego real estate market or about the economy of the US as a whole, we really do not need another “Boom” market because the aftermath of it is so devastating.
If we are turning around, then I hope it is a slow, steady turnaround.
To see all homes, foreclosures and short sales on the San Diego real estate market, click here.
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Fear permeates all the news and the jitteriness of the markets is a consequence of the gloom and doom nay-sayers.
We need to have more factual reports backed by statistics showing what is really happening and not relying on someones ideas of what they predict based on who knows what evidence.
P.L.
Facts and crystals balls are like oil and water. You can shake them up but they will never blend. I like the facts just like I like oil (even if it’s high in calories). It’s a FACT JACK!