[ICH] 09/04/07 « Finfacts » — – US homes may lose as much as half their value in some US cities as the housing bust deepens, according to Yale University professor Robert Shiller. Meanwhile, Martin Feldstein of Harvard University says that experience suggests that the dramatic decline in residential construction provides an early warning of a coming recession. The likelihood of a recession is increased by what is happening in credit markets and in mortgage borrowing. Feldstein says that most of these forces are inadequately captured by the formal macroeconomic models used by the Federal Reserve and other macro forecasters.
[Reuters] Some 57 percent of mortgage broker customers were unable to refinance their adjustable-rate loans to avoid higher monthly payments in August, suggesting the U.S. housing slump may worsen, according to a national survey on Tuesday.
About 5 million adjustable-rate mortgages are slated to reset to higher rates in the next 18 months, according to Lehman Brothers. Economists warn the housing slump could deepen if those homeowners are unable to refinance loans under tighter underwriting guidelines and as home values stagnate or fall.
[Reuters] Market climbs on rate cut hopes
Economie 101: Les grandes banques nationales de la planète viennent d’injecter de 500 à 700 milliards de dollars US en aide aux petites banques sous forme de prêts et ceci en 3-4 jours. Ces banques ont « imprimées » ces dollars… Tout cancre en économie sait que d’imprimer des dollars est inflationniste. Pourtant la Fed songe à baisser les taux d’intérêts. Hmmm, je suis très content de ne pas être un économiste! [1, 2, 3 ]