Request analysis has expanded by Sharewise.com in collaboration with the ham Ticker.de Exchange letter the SITUATION on the U.S. real estate markets in the US real estate crisis to a U.S. financial crisis and now threatens a global economic crisis. Worldwide rescue packages are put together, which either cover financial institutions, or promote the economy. But there was not a direct intervention in the US housing market until today. But the crisis in the US property market has begun, why not also right there I end it? Now, the US real estate crisis is not the origin of the problems of our financial system, but only one of the flaws in a sequence of very many previous errors. I want to go now back not seventy years at the time, in which Fannie Mae was created as an authority, to bring liquidity to the US real estate market. 1971, the low interest rate policy of Alan Greenspan up to the deportation of financing risks in cryptic real estate derivatives play all rising real estate prices in the hands the detachment from the gold standard.
Today, this House of cards breaks together and the real estate prices are falling so far up to 30%. Economists estimate that another 10% drop in prices are expected, before a bottom is formed. Today we look at the developments from other page: still not a single construction company in the United States have gone bankrupt. Contractors are planning new buildings, building sites, new residential districts continue to, etc. In the first semester of studying economics, I learned that the price is a function of supply and demand.
When supply is greater than demand, the price falls. And at current prices, the offer is obviously still too large. So why are houses built still? In October were in the United States only”800,000 new homes built. At the same time, but less than 500,000 buildings were purchased. The decline of in housing starts as the nadir of the crisis of the real estate is sold in the media: since 1959, since the data for housing starts are collected, never fewer housing starts reported. But it is concealed, that even this low number of construction start is still about the number of sold new. A stabilization of in home prices is so not to bring. Currently, the market is supplied with cheap loans. This is the solution currently offered to Fannie Mae and Freddie Mac by the now nationalised institutions. The problem: before someone has failed at least twice to pay his monthly installments, can not be helped. Those indoors which severely restrict the rates payable, do not benefit from more favourable loans. Apart from this type of assistance is a subsidy of the ailing real estate market, a clean-up is thus delayed. Interested parties are set to hold back on new homes, because they do not know how long the rates will fall.