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Why There Will Not Be A Housing Recovery

By
Real Estate Agent with JOD Realty, LLC

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:

USDebtClock.org

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.

Comments (3)

Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

Jerry.....I agree with you 100%....it will take a decade to come out of this mess.....there's no light at the end of the tunnel and there will not be until we have a new administration in office....and then it will be years to recover.

Dec 11, 2009 11:49 PM
Charlottesville Solutions
Charlottesville Solutions - Charlottesville, VA

It is a subjust that most agents will not talk about... that clock is scary

Merry Christmas from your friend in Charlottesville!

Dec 11, 2009 11:51 PM
Sara Woolford & Steve Golson, ALHS
iTexas Realty Co. - San Antonio, TX

Hi Jerry-  Debt reduction, both personal and nationally, will be the leading factor in any recovery from this point on.  Just my opinion.  Sara

Dec 11, 2009 11:53 PM