SubPrime Mortgage Burst

The housing market plunged deeper into despair last month, with sales of new homes plummeting to their lowest level in more than 12 years.

The slump worsened even more than most analysts expected, heightening fears that the country might be thrust into a recession.

New-home sales tumbled 9 percent in November from October to a seasonally adjusted annual sales pace of 647,000, the Commerce Department reported Friday. That was the worst sales pace since April 1995.

The housing picture turned out to be more grim than most anticipated. Many economists were predicting sales to decline by 1.8 percent to a pace of 715,000.

By region, sales fell in all parts of the country, except for the West.

In the Midwest, new-home sales plunged 27.6 percent in November from October. Sales dropped 19.3 percent in the Northeast and fell 6.4 percent in the South. In the West, however, sales rose 4 percent.

Over the last 12 months, new-home sales nationwide have tumbled by 34.4 percent, the biggest annual slide since early 1991, and stark evidence of the painful collapse in the once high-flying housing market.

"I think you can classify what we are seeing in the housing market as a crash," said Mark Zandi, chief economist at Moody's Economy.com. "Sales and home prices are in a free fall. The downturn is intensifying."

The median sales price of a new home dipped to $239,100 in November. That is 0.4 percent lower than a year ago. The median price is where half sell for more and half for less.

On Wall Street, the Dow Jones industrials, after an erratic session, managed to squeeze out a small gain even as the grim home sales report added to some investors' angst. The Dow closed up 6.26 points at 13,365.87.

Would-be home buyers have found it more difficult to secure financing, especially for "jumbo" mortgages - those exceeding $417,000. The tighter credit situation is deepening the housing slump. Unsold homes have piled up, which will force builders to cut back even more on construction and look for ways to sweeten the pot to lure prospective buyers.

"A lot of borrowers are being disqualified for loans. If you can't qualify for a mortgage the game is over. For those who do qualify, it takes longer to get loans," said Brian Bethune, economist at Global Insight.

Ultimately the foreclosures will set the new home prices, which will be substantially lower than the current market value; consequently the overly inflated homes will bottom down and people will be able to qualify and afford the homes. The other alternative, the scary alternative is: Just like the terrorist used our planes to hit us on 9/11, the Chinese are using our free markets and corporate greed in a hostile takeover of our economy. If the golden rule applies, he who has the gold makes the rules, within the next decade; China will own a substantial chunk of the US. The repercussions can only mean war. Once our leaders wake up to these back door acts of war, they will retaliate.


The Arabs have followed suite and are investing heavily in our crippled economy, infusing tremendous sums of money in our fraudulent and fledgling banks for a share of the pie. The Arabians have a superior hand in all this because they have direct control over the price of oil, adjusting it at will to suit their objectives.



These foreigners are pseudo-government conglomerates masquerading as holding companies with the sole purpose of toppling our nation in a hostile takeover of our economy. We might as well kiss Israel goodbye!