Inquiring minds are reading about Gary Shilling and him updating his October prediction that house prices would fall another 20%. In the two months since that prediction, house prices have once again started to slide.
Below, Mr. Shilling outlines his ideas on the recent drops are just the beginning:
Last spring, many believed that not only was the housing collapse over but that a robust rebound was underway. Investors were crowding into foreclosed house sales and bidding up prices in California, often the bellwether state for new trends. The tax credit of up to $8,000 for new homebuyers that expired in April spurred buyers and promised to kick-start housing activity nationwide. TheHomeAffordable Modification Program was trumpeted by the Administration to help 3 million to 4 million homeowners with underwater mortgages by paying lenders to reduce monthly payments to manageable size and then paying homeowners to continue to make those payments.
But then a funny—or not so funny—thing happened on the way to housing recovery…
Please click on this link to see: Mr. Shilling’s presentation.
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