The Housing and Credit Crisis Explained

This presentation on the Housing and Credit crisis is the best I have seen. It explains everything from soup to nuts.

Each slide contains a graph that is well explained.

They say a picture is worth a thousand words.

Once you get through this, you will understanding the current credit crisis in housing, and what to expect in the years ahead.

If you take the time to view and read this you will be fully informed.

Hit the full screen button in the upper right hand corner of the panel below.

T2 Partners Presentation on the Mortgage Crisis

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Bob DeMarco is a citizen journalist and twenty year Wall Street veteran. Bob has written more than 500 articles with more than 11,000 links to his work on the Internet. Content from All American Investor has been syndicated on Reuters, the Wall Street Journal, Fox News, Pluck, Blog Critics, and a growing list of newspaper websites. Bob is actively seeking syndication and writing assignments.

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TauRx Therapeutics-- New treatment halts progress of Alzheimer's disease

clipped from alzheimersreadingroom.blogspot.com The results of the Phase 2 study of TauRx's new treatment strongly suggest that it is possible to halt progression in mild and moderate Alzheimer's. TauRx is continuing to refine its treatment and hopes that restoration may be possible at least at the earlier stages with improved versions of its drug. Tangles are already destroying nerve cells in parts of the brain critical for memory in people in their fifties and upwards. The ultimate goal is to develop a product that is convenient for patients that could be widely used at the very earliest stages of the disease, long before patients experience the first symptoms of Alzheimer's.

The Evolution of Home Ownership

Forty-three percent of housholds aged 20-34 already own a home. Nationally about 70 percent of households now own a home. With a return to more normal lending practices and higher interest rates it is likely that the back log of homes already being built and homes from foreclosures will cause a long term hangover in the housing market.

These numbers indicate that housing is a big long term problem for the economy. This problem is not likely to resolve in a couple or few years. It seems that houses are over owned at this point in time. Demogrpahics already in place favor downsizing (retirement) and shrinkage in the pool of available new buyers. This indicates a long term, possibly a decade, hangover in the housing market. That is much longer then anything now being anticipated in the market place.

It is likely that we will see significant mark downs in prices in the years ahead in the formerly hot areas like New York, California, and Florida.

More details on next page.


Get the detailed paper from the Atlanta Fed

Source Atlanta Fed: Mortgage Innovation Boosted Home Ownership

After holding steady for three decades, the share of U.S. households owning their own home jumped from 64% in 1994 to 69% in 2005. The primary cause, argues a new staff study from the Federal Reserve Bank of Atlanta, was the introduction of new mortgage products that reduced the initial down payment needed by a home buyer.

The paper, by Matthew Chambers, Carlos Garriga, and Don E. Schlagenhauf, examines changes in home ownership by age cohort. The U.S. population aged in the last decade, boosting the share of the population in age cohorts that are more likely to own a home. But the authors conclude this explains just 16% to 31% of the rise in total home ownership. The introduction of new mortgage products, in particular those that allowed little or no down payment, accounts for 56% to 70% of the increase. Such “loans tend to be the contract of choice for younger cohorts which explains an important part of the increase in the aggregate homeownership rate observed since 1994,” they say. Indeed, while the homeownership rate rose for all age groups in that period, it rose most for households under age 35: it jumped to 43% from 37.3%

Magnetoencephalography (MEG)

This development has wonderful implications for diagnosing Alzheimer's; it has far reaching implications for those predisposed by genetics to Alzheimer's disease.

Read this article at the Alzheimer's Reading Room

The latest in Financial Infotainment--Minyanville

A friend of mine sent me a link to this website, Minyanville. The site is will worth visiting. Informative and entertaining. The stuff on China, subprime loans and trading is thought provoking. Chances are good you will be sending this link along to your freinds.


Some examples of the headline stories.

Fire in the Hole!
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...as yesterday’s false alarm once again proved, structural smoke won’t matter until someone actually sees a fire.

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Today's top stories and some stocks with potential to move...

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The Market's Remarkable Symmetry
The market may have an agenda higher in terms of time and price, but... there are many clusters of time, price and pattern projecting a turning point in this neighborhood.


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