Blog on the Run: Reloaded

Tuesday, February 8, 2011 8:14 pm

Want to see something you won’t see on a big bank’s balance sheet?

Filed under: We're so screwed — Lex @ 8:14 pm
Tags: , ,

Voila! A housing market even worse than in the Depression:

Along with the snow and cold, November brought continued declines in home values. In fact, the Zillow Home Value Index has now fallen 26% since its peak in June 2006. That’s more than the 25.9% decline in the Depression-era years between 1928 and 1933.

November marked the 53rd consecutive month of home value declines, with the Zillow Home Value Index (ZHVI) falling 0.8% from October to November, and falling 5.1% year-over-year.

But wait! Some good news!

Foreclosures, however, took a tumble in November, with fewer than one out of every 1,000 homes being foreclosed.

Awesome! That’s way down!

Unfortunately, that is an effect of the bank moratoriums that took place after the robo-signing issues came to light. Foreclosures are expected to rise again once that effect wears off.

Oh.

Crud.

Now, you might think that a housing market this bad would mean that a lot of mortgages that are listed as “assets” on various balance sheets are only assets if, by “assets,” we mean, “instruments worth half or less of what we say they’re worth.” And you would be correct. However, the banksters got to Congress and so Congress got to the FAAB and so now banks and their accountants are allowed to lie about how big their assets are and stay in business, rather than being liquidated in orderly fashion with their executives, stockholders and bondholders made to take the haircut.

In the financial Super Bowl, the refs are all being paid off. And you, mon ami, are not a ref.

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