Doom on you, home buyer

10 charts to scare the piss out of you prospective home buyers.

The Recession is OVER!!!!

The DOW is holding 10,000 this week. Yay!

Let's look at other figures.

1 out of 136 homes in the U.S. are in foreclosure.

Over 970,000 homes entered foreclosure in the 3rd Quarter of 2009.

oil prices are spiking. (speculation much?)

Sound familiar?

Add to that the "4 week moving average" of new jobless claims cresting 530,000...

...and you got a world of hurt.

as icing to the cake let's add: no specific and measurable finance regulation  and   nor reform of any kind.

let's chant it now: "DOUBLE DIP! DOUBLE DIP! DOUBLE DIP!"

double-dip recession

The experts weigh in.

Pimco manages $850 Billion in investment. Their CEO, Mohamed El-Erian, sees a 50% chance of a double-dip in 2010.

NYU economist Nouriel Roubini sees a small but rising probability for another dip.

Pimco Chief Investment Officer Bill Gross sees the possibility rising if the government pulls back too swiftly on stimulus programs.

We'll have to eventually pay for all this stimulus money. But if you crank taxes up, you discourage growth. Don't crank up taxes fast enough and the US dollar is worthless in 10 years. It's a precarious high wire act with a hungry bloodthirsty lion at each end of the line.

Richard Rahn of the Cato Institute breaks it down very clearly:

"As interest rates rise, as they must, and international commodity and other prices rise as the global economy recovers, real, after-tax, inflation and tax-adjusted disposable incomes will continue to fall. This means real consumption can rise temporarily but will likely fall again, giving the United States a double-dip recession."

Welcome to your lost decade, America.

CNBC, a leading whorish cheerleader for Conspicuous Greed has a completely different take; one filled with gumdrop wishes and endless wealth that can be found at the end of the rainbow. There you'll find wads of C-notes flowing from the golden star-hole of a Magical Unicorn's anus.

Here's some CNBC video. Let's see what steps out of the Clown Car:

say goodbye to the cornucopia of cash

And the headline reads:

Half of mortgage borrowers will be 'underwater'
An estimated 25 million borrowers will owe more than their house is worth by 2011

CNN Money article here.

The Deutsche Bank analysts are at it again:

"If our home-price forecast is correct, roughly one in two mortgage borrowers and one in three homeowners will owe more than their home is worth"

That is IF they are right. If finance people have proved one thing in the past few years it is that just about everyone can be simultaneously wrong.

I have a feeling that the actual outcome will be fairly close to their prediction.