No matter what the housing market does – whether it trends upward or trends downward – either way, it is bad for economy.
That’s the CBS take on the economy anyway. “The prices of homes are falling and there is more evidence tonight that those counting on their houses as their nest eggs may be in trouble,” said Russ Mitchell on the August 26 “Evening News.”
All right, falling home prices are bad. So we need to see home prices increase? Not so fast.
Flashback to June 15, 2006: “[E]ven with mortgage rates inching higher, prospective home buyers are anxious to get into the real estate market,” said then-CBS correspondent Trish Regan (who now is employed at CNBC) on the CBS “Morning News.” “The only problem – [home] prices are just too expensive.”
The median home price is currently $223,800 according to the August 26 CBS “Evening News.” “With home prices dropping in so many areas, many families could lose a big financial cushion – their home equity,” said Bianca Solorzano.
But, just 14 months ago, the median home price was even lower – at $223,000. Then, such “expensive housing” was bad for the economy. “An ever more expensive housing market is helping to drive inflation upwards. Americans are spending more of their paychecks every month on housing,” said CBS “Morning News” anchor Susan McGinnis on June 15, 2006.
Based on CBS News’s logic, unless home prices remain stagnant for eternity, our economy is doomed.
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Forget what I said
August 29, 2007 - 08:44 ET by LCT688Forget what I said a few weeks ago. This is the new gospel truth and you will beleive it!
As Clinton's Chief of Staff
August 29, 2007 - 09:56 ET by motherbeltAs Clinton's Chief of Staff Mack McClarty once told the media: that explanation is no longer operable.
}}---> Home owner
August 29, 2007 - 08:45 ET by Cool ArrowOh, the horror! People will be buying houses for less. What will we do?
I don't see this hurting people a whole lot. If you're selling today, you're probably trying to move up. Surprise! The house you subsequently buy will probably be cheaper as well.
The same people "hurt" by this downturn will put up with showroom depreciation when they drive off in that new car.
~LYDSEXICS UNTIE!~
Jeez, Cool, don't confuse
August 29, 2007 - 09:59 ET by motherbeltJeez, Cool, don't confuse the issue with logic! Why cheer about buying for less when you can whine about having to sell for less????
Lousy retirement plan anyway
August 29, 2007 - 08:56 ET by Mica the MagnificentIf you are counting on the value of your house as your retirement 'nest egg,' you may be in trouble.
Unless you plan to live off a reverse mortgage, your home makes a lousy retirement plan.
You have to live somewhere.
Selling your house in an inflated market means you will buy a house in an inflated market. Same for a down market.
And, no. Downsizing works up to a point. Not everybody has a mansion to sell in New York City and be willing to live in a trailer in Rochester.
PWN3D! Nice job,
August 29, 2007 - 09:16 ET by fosstenPWN3D!
Nice job, Jeff.
Forget 911, I dial 9MM.
Let me see if....
August 29, 2007 - 09:37 ET by aka Hondo....I got this straight. Housing prices go up, bad for the buyer = bad for the economy. Housing prices go down, bad for the seller = bad for the economy. Just be thankful that none of these rocket scientists in the MSM are running your investment firm or are in charge of your portfolios. Liberal = stuck on stupid!
Again I repeat my new slogan
August 29, 2007 - 11:08 ET by PawpawNYou can fool some of the people some of the time, but you can fool a liberal fool all the time!
You forgot to add that when
August 29, 2007 - 09:50 ET by Hero SquadYou forgot to add that when home prices stagnate, it's bad for the economy. :-)
*****
"Some people have a way with words. Other people, er, I don't know. Not have way, I guess." - Steve Martin
CBS has terrible ratings
August 29, 2007 - 10:02 ET by metroxPerhaps CBS is always sensationalizing news stories in a vain attempt to get market share? Say something outrageous and people will folk to your attention.
Perhaps it's just that they are a terrible news outfit and can't think their way out of the box?
If they actually reported hard news without bias, that would be novel, maybe they should try that.
Funny...
August 29, 2007 - 10:08 ET by Prester John...how people can get so worked up about paying $40-50 to fill up their SUV, yet at at the same time have no problem buying a $650,000 McMansion (I live in northern Virginia) with a $3,000-4000 a month mortgage that eats up so much of their income they had nothing to save for retirement or college for the kids.
People sure think strangely don't they?
Now if Hillary were
August 30, 2007 - 09:14 ET by Conservative_in_mass.Now if Hillary were president, the Headlines would read something like this...
Median home prices increasing, your net worth is going through the roof!
Median home prices declining, home ownership in reach for all!
Its all about who they want to make look good or bad. Let's not let the economic facts get in the way of a good hit piece. You can't help but be jaded towards everything the MSM reports.