This is my opinion based on nothing more than what I read every day. No fancy graphs. No surveys or studies. Just common sense.
I believe there will not be a sustained housing recovery in the USA for a long time. If we are extremely lucky, there may be some temporary bumps in economic activity. But that will be all.
Why?
The answer is simple - debt. Federal, state, local and personal debt. The personal debt bomb exploded when housing crashed. The others are now set to go off, as well. Dozens of states are on the edge of bankruptcy. Local governments are in just as bad shape.
Than there is the federal government. This is the "biggie". They are so deep in debt, both current and promised, that there is absolutely NO WAY they can service this debt, EVER! It will take either a default or hyperinflation to do so. Both destroy the economy.
I don't even need to start on the disastrous government policies that brought us this situation. Or even cry about how they are continuing to add debt and more horrific policies every day. It is too late. The day of reckoning is down the road and cannot be avoided.
So, whenever you hear a government official or network economic "expert", just think about our debts.
Oh, and by the way, here is the link to the latest "Debt Clock" info:
Depressing? You bet! But the real estate industry, particularly the NAR or those rah-rah industry magazines, is not facing up to the facts. In some cases they are endorsing the bad policies!
Anyway, that is my opinion.
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