“Negative equity is typically a demand-side obstacle to sales and refinances, but currently is also restricting the supply of homes for sale,” Khater said. In markets where more than half of borrowers are underwater, the average supply drops to 4.7 months, compared to 8.3 months in healthier areas. As a result of the restricted supply,…
Tag Archive for Credit Boom
Latest Business Headlines
“The Wrong Austerity Cure” by Laura Tyson | Project Syndicate
by Newswires • • 0 Comments
BERKELEY – Fiscal profligacy did not cause the sovereign-debt crisis engulfing Europe, and fiscal austerity will not solve it. On the contrary, such austerity has aggravated the crisis and now threatens to bring down the euro and throw the global economy into another tailspin. In 2007, Spain and Ireland were models of fiscal rectitude, with…
Charles Hugh Smith
Why Bernanke has Failed, and Will Continue to Fail
by Charles Hugh Smith • • 0 Comments
Ben Bernanke’s zero-interest rate policy (ZIRP) and command-economy efforts to maintain mispricing of risk, debt and assets are destroying capital and capitalism. No wonder his policies have failed so miserably.
To understand why Federal Reserve C…
