The outlook for the economy has worsened in recent months, and the downside risks to growth have increased," Bernanke said. "To date, the largest economic effects of the financial turmoil appear to have been on the housing market, which, as you know, has deteriorated significantly over the past two years or so."This is so depressing. I cannot believe our luck to be moving and selling a house right with this elephant walked into the room. But, in the scheme of things, we are quite lucky, given I have a job and a wife and three wonderful, healthy kids. So I won't complain about my petty problems since they are small in comparison to others. If we can sell this house, great. If not, we'll deal.
Bernanke also told senators that the "virtual shutdown" of the market for subprime mortgages given to people with blemished credit histories or low incomes -- and a reluctance by skittish lenders to make "jumbo" home loans exceeding $417,000 -- have aggravated problems in the housing market.
Unsold homes have piled up and foreclosures have climbed to record highs.
Thursday, February 14, 2008
The Economy Sucks
From Ben Bernanke (click here for all of it, which is a must read):
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don't forget--you're selling a house and (presumably eventually) buying a house. Since the one you're buying will be worth more than the one you're selling, you're likely to be better off than if you were at the peak of the market, provided that Texas is in a slump too.
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