Wednesday, February 25, 2009

"We Will Rebuild." But It's Not Going to Be This Year.

President Obama's Address to Congress: Transcript

Governor Bobby Jindal (R-La.) GOP Response: Transcript

The missing piece of the puzzle? What exactly will happen to the largest banks in the US, all of which are technically insolvent. Fed Chair Ben Bernanke isn't showing his hand, though he echoes prominent economists: the Recession may lift in 2010, but it's a hard slog through 2011.

Earlier Tuesday, the topic that began it all was in the news: declines in home values. The monthly S&P Case-Shiller Home Price Index was released. The numbers, tracking 20 major metropolitan areas, were dismal: home prices down 18.5% in December '08 from '07. 2008 closed out with record low prices.

Nationally, the prices of existing single family homes are now back at 2003 levels.
More in an upcoming post, but this caught our notice:

“The broad downturn in the residential real estate market continues,” said index chairman David Blitzer. “There are very few, if any, pockets of turnaround that one can see in the data. Most of the nation appears to remain on a downward path, with all of the 20 metro areas reporting annual declines, and eight of those MSAs now with negative rates exceeding 20 percent.”

Read a short version of the numbers here; see the breakdown of Metro Areas here; and the full report here.

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