Why Is This A Bad Thing? New Home Purchases Plunge To Lowest Level Since 2000

Proof  •  November 12, 2009

I’m thinking this is a positive:

Nov. 12 (Bloomberg) — Mortgage applications to purchase homes in the U.S. plunged last week to the lowest level in almost nine years as Americans waited for the outcome of deliberations to extend a government tax credit.
The Mortgage Bankers Association’s index of applications to buy a house dropped 12 percent in the week ended Nov. 6 to 220.9, the lowest level since Dec. 2000. The group’s refinancing gauge rose 11 percent as interest rates decreased, pushing the overall index up 3.2 percent.

Times of economic uncertainty are hardly good times for Americans to be taking on more debt. Perhaps it makes sense for some people, but generally speaking as a nation we need less debt. Not more debt.
But in Washington DC everyone is always carrying on as if the key to economic recovery is using policy to push people into spending and borrowing more. But that’s madness.
Of course, that’s also their approach to every other problem they’re faced with. Spend more. Borrow more. I guess when all you have is a hammer, everything looks like a nail.

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  • http://Array sayanything-2

    Because you are a broke assed taxi driver who pimps transvestite hooker?

  • Hanni

    Communist utopia? You have no idea what a free market really is…..if you think government intervention isn’t ensuring a living wage and better working conditions for people……”numb-nuts”.

  • sayanything-48

    Both were results of a bubble.

    And cause by our Federal Government.

    You left that off. Just trying to help.

  • sayanything-48

    sales of existing homes is rising, new home sales are
    flat, or dropping, depending on the region,

    It might have something to do with the 1,000,000 excess inventory
    built durring the boon??? Nah…

  • HG

    And H knows all about falsly attributing quotes Rob.

    http://sayanythingblog.com/readers/entry/libel/

  • Hannitized

    The obvious difference being that i didn’t quote you. I can interpret what I think you are suggesting, even if you don’t understand the implication of your word choice.

    I’m not going to allow you to thread jack, again. Instead, let’s keep this conversation narrowly focused on Rob’s brilliant idea that when people stop buying homes, it’s a good thing.

  • sayanything-2

    Oh, and sanni? I fire idiots like you on a regular basis. Its fun.

  • sayanything-2

    Poor sanni, too stupid to read, too slow to catch up. Rob kicks your teeth in every day, and we all laugh at you over it. Self destructive masochism, you got it, bad.

  • sayanything-1714

    Hey…here is another great idea; Why is the unemployment rate being high a bad thing?

    I mean, this makes business more lean, and ability to pay the people who actually earn their worth (me).

    Why is it bad if companies use machines to do the job that lazy people who don’t actually work do (you), and lay them off?

    Don’t these two things fit in with the Republican ideology of the free market?? Why yes, yes they do.

    The free market leads to fewer jobs…….period.

  • sayanything-2

    “Maybe you should go look at yourself in the mirror for a while.”

    Thats all sanni does, when he is not driving that cab or pimping his transvestite “girlfriends”.

  • Hanni

    The information Rob provided does not state existing homes sales are rising, whatever 29Insaner thinks he is saying.

  • Hanni

    Ask Piligrim how much he hates his government paid pension.

    And what kind of retirement is your DJ job providing you Kenny? A solid retirement plan, to be sure.

    You idiot.

  • Hanni

    Rob,

    Maybe by adult conversation you mean when you falsely attribute quotes to people that they didn’t say?

    Try spending some time over at “The Washington Monthly”, they will eat you alive. You are a charlitan, pretending you matter…and have something to say.

  • Hanni

    If the government was not involved in monitoring and setting rules for the free market system to live by, all of you low-skilled morons would be miserable.

    You can thank a liberal for your lifestyle, today.

  • sayanything-48

    It’s almost like the administration read Atlas Shrugged and decided
    that Mooch was the hero.

    In fact they’re following the script pretty well.

  • sayanything-9974

    Spoken like a proloteriate elitist Lewinsky wannabe. The government is not the answer it is the problem. The reason a$$holes like you need government involvement is because you think you are smarter than everyone else. We don’t need some numbnuts telling us how we need to live our lives. I will trust the free market over the government any time. The lifestyle you seek for us is long lines for bread and toilet paper. like the good old soviet model. Americans are a proud and self reliant people and your communist utopia will cause another American Revolution. You can bet your ass you will be one of the first to be culturally purged. Give me Liberty or Give me Death.

  • sayanything-342

    Someone give handjob a shovel, we need to put him to work doing something he is qualified for.

    The free market creates a structure in what a particular labor/skill is worth. That’s why we pay more for educated skilled labor than unskilled labor. The big problem is that only 25% of our population has any secondary education and another 40% of our slackers think their limited education and entitlement mentality is all they require for a big fat paycheck. Everyone else is just trying to get by and all they want is for government to leave them alone.

  • Hanni

    Rob, your argument is hardly mature or even intelligent.

    The fact that you don’t understand the money people lost on the housing market is no different than not understanding the significance in job loss. Both were results of a bubble. You idiot.

    And really, it is hysterical how you take yourself so seriously. Your such a boob.

  • http://fu.com/ robert108

    It is you who have no idea of what “free market” means, Hanni. Govt is always the problem, never the solution. Again, govt has a legitimate function in ensuring basic structure, like a stable currency(Obama fail) and enforcement of contracts, but when govt tries to manipulate outcomes for political purposes, it always screws things up.
    Again, it’s limited govt, not no govt.
    Try to pay attention; I know the Soros talking points are screaming at you.

  • sayanything-2

    Seth, over building and over valuation have both added to the problem. Throw in Freddie&Fannie and it is like pouring gas on a fire.

  • brenarlo

    Why did the housing market burst? The Feds loose money policies pumped too much money into the real estate sector causing WAY too many houses to be built and massively inflated the values of them. This correction is long overdue and has to happen.

  • sayanything-2

    More lies and sh&t spew from the lying sh$t spewer.

  • sayanything-48

    The free market leads to fewer jobs…….or more lower paying
    jobs…..period.

    You really amaze me… You’re able to pack SOOO much ignorance into so
    little space… Good job!

    In the early prior to certain moderization, large towns employeed
    “LampLighters” to light, extinguish and replace streetlights. With the
    advent of certain gas lights and then the electric street light, these
    people were no longer needed…

    Prior to the 1950′s there were 100,000 phone switch board operators. The
    moderization of phone switching technology made these positions obsolete.

    Did all of these people, after their positions were phased out simply vanish
    into the wilderness and die of starvation? You position seems to indicate
    that they did.

    No. They retooled themselves for supporting the systems that they were
    working with or found new employment.

    Before the Industrial Revolution it took 80% of the Citizens of the US to
    feed 100% of the population.

    Now it takes 20% to feed 100% (and export far more than we ever have).

    Did all those people die and/or find MUCH lower paying jobs?

    No… we had to produce and repair the tractors… build new buildings…
    produce new stuff.

    Under Communism, none of these innovations would have been possible, as
    Communism doesn’t adapt easily to new technologies and tends to stifle the
    development of them.

    You’re amazingly wrong Hanni… But I suppose you know that… you just
    like being a troll.

  • sayanything-2

    spark? Please try to explain you babbling in any comprehensible manner. Cause you make as little sense as sanni, and your boy Barri.

  • sayanything-1714

    The point is that the government shouldn’t be trying to manipulate peoples decisions.

    You mean like divorce laws??? Tax breaks for Marriage and having children?? As long as the tax breaks are the ones Cons didn’t think about…eh Rob.?

  • sayanything-2

    “Why Is This A Bad Thing? New Home Purchases Plunge To Lowest Level Since 2000″

    It ain’t. Especially for re-modelers, and all the semi-skilled, college f&cked labor we can hire for pennies on the dollar. Otherwise they would simply be unemployed, instead of unemployable.

  • sayanything-1714

    Correction:

    The free market leads to fewer jobs…….or more lower paying jobs…..period.

  • TheTodd

    “Its still an incentive. A manipulation to coax people into doing something they night not have otherwise.”

    So are reducing interest rates, however.

  • sayanything-48

    Don’t forget Congress and the CRA.

  • sayanything-2

    Too funny, sales of existing homes is rising, new home sales are flat, or dropping, depending on the region, and sanni has no clue what it means.

  • sayanything-48

    What what???

    But if we don’t borrow and spend even more, how can we prove that Keynes was right?

    We have to prove him right… we’re so close… Though his ideas never ever worked anywhere before… If we just spend enough… we’ll prove him right…

    Everyone… go buy another house… don’t worry that you can’t even rent it… just go buy it.

  • sayanything-9974

    The new home purchases might be down but the % of qualified buyers is way up. Bad news for illegal aliens and welfare cases. i guess they will need to earn the American Dream – after all it is not a government funded and provided right (yet).

  • Hanni

    Rob,

    Did you really just tell me to look at myself in the mirror for a while? Who do you think you are talking to? Haha.

    Hey man, I know damned well I make more money than you, and I wager more than most here on SAB. Why would you even go there?

  • http://fu.com/ robert108

    The free market generates individual prosperity, which Marxists like Hanni just hate. Free markets produce freedom from govt control.

  • headward

    Greatest quote that liberals want you to ignore:

    “You cannot legislate the poor into prosperity by legislating the wealthy out of prosperity. What one person receives without working for, another person must work for without receiving. The government cannot give to anybody anything that the government does not first take from somebody else. When half of the people get the idea that they do not have to work because the other half is going to take care of them, and when the other half gets the idea that it does no good to work because somebody else is going to get what they work for, that my dear friend, is the beginning of the end of any nation. You cannot multiply wealth by dividing it.”
    Adrian Rogers, 1931-2005

    How does this relate to the housing sales? Look at the $8k insentive that the gov’t is giving away.

  • sayanything-1317

    A tax break isn’t taking from Peter to pay Paul like a handout or a “stimulus” does.

    Of course, issuing the tax break is, in and of itself, an admission that property taxes are a burden to buying and keeping a home.

  • http://sayanythingblog.com robport

    The point is that the government shouldn’t be trying to manipulate peoples decisions. It almost always ends badly. Let’s just let people get loans if they want loans and let lenders give loans if they want to lend and the government can stay out of it.

  • sayanything-221

    I have an idea.
    Why don’t we just borrow the money to pay off our debt.
    Then we can spend government money into prosperity.
    Oops, wait a minute, Obama already doing that.
    Just kidding: “You can’t spend your way out of recession or borrow your way out of debt.” MP Daniel Hannan
    Tell that to Obama, he would get a glazed and puzzled look in his eye. Huhhh…

  • sayanything-81
  • sayanything-1317

    But the original tax itself might as well be called a disincentive. Something that makes home owning too expensive for people who otherwize would’ve bought a home.

    Whenever the government hamstings itself, we usually all win. Exceptions exist of course.

  • spartacus

    …Another reason is that robots are logical, that is when they don’t perform or respond correctly there is a sensible reason behind it, with people (especially you), not so much.

  • headward

    Kind of reminds me of this SNL skit:
    http://www.hulu.com/watch/1389/saturday-night-live-dont-buy-stuff

    The couple reminds me of the Feds.

  • spartacus

    I think you inverted where you wanted to put your (you) and (me) in that rant, but you are right about one thing (perhaps the first time in your life, let’s have a party!), the reason I went into robotics is that I recognized early in my working life that there quite a few people, not unlike yourself, that can’t even handle simple tasks that involve repetitive motion, no matter how much time you give them to catch on to it.

  • http://sayanythingblog.com robport

    Leave it to a liberal to want to take credit for the hard work amd achievement of others.

    I know you hate people who have more money than you do Hannitized but here’s reality: they generally have more money because they’re smarter than you are and work harder.

    Tough pill to swallow I know. Maybe you should go look at yourself in the mirror for a while.

  • http://sayanythingblog.com robport

    Its still an incentive. A manipulation to coax people into doing something they night not have otherwise.

    That’s the problem.

  • sayanything-7134

    you aren’t advocating some sort of push for higher education are you?

  • http://sayanythingblog.com robport

    I told you to go look in the mirror because I thought it might distract you for a while so the grown ups could talk.

    You do so love yourself.

  • sayanything-81

    notice how r108 puts the free market as ontologically prior to individual prospering and not the other way around. that’s the mark of a fascist, no?

  • spartacus

    Ever noticed how the academic world diametrically opposes the real world? If you can’t be successful in the real world, well, there’s a place for losers.

  • sayanything-1317

    Jeez, you just never find the bottom of that massive well of stupidity, do you?

    The free market, the source of all jobs, leads to fewer jobs? Might as well say that feeding more people leads to rampant starvation.

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