Fri 24 Oct 2008
[Getting Graphic] GDP Size Matters (Bailout-wise)
Posted by Jonathan J. Miller under Getting Graphic[2] Comments
Getting Graphic is a semi-sort-of-irregular collection of our favorite BIG real estate-related chart(s).
Zubin Jelveh’s Odd Numbers blog at Portfolio.com from has a terrifc chart that ranks countries with a bailout in place by percentage of GDP.
Staggering – it makes the US $700B bailout seem like a drop in the bucket relative to other countries. Of course, more drops are coming. Incidentally, those countries on the list have been on a US consumer buying spree, including real estate.
Check out the Paulson interview on Charlie Rose on Tuesday. Is it just me, or was US Treasury Secretary Paulson’s defense of the current administration’s handling of the credit crunch and his job exit strategy strange? I wonder why he would not consider remaining in office (assuming the new president wants him) to oversee the largest financial crisis since the Great Depression?
This just in: The evil man theory of failure.
UPDATE: If you are feeling a little upbeat today – confidence feeling better, likely because it is Friday, I have just the thing to knock you down. No I am not talking about the Dow Futures falling 500 points overnight. Next year, someone is predicting the Dow to drop another 41% over the next year because earnings estimates are too high.
Click here for original graphic.
At some point down the road, albeit later than sooner, won’t we see a surge in real estate activity? Stock market volatility is crazy and borrowers are restrained from financing now. Pent up demand and bloated inventory…
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October 24th, 2008 at 1:50 am
This is a great visual. I think it goes a long way in showing how unrealistic these bailouts really are.
October 25th, 2008 at 12:05 pm
Definitely uncertain times. With all of the liquidity already pumped and much more to come, you do have to wonder when the effects of this will hit the street. It’s not a matter of if, it’s simply a matter of when.
In looking at recent trends, it does look like many overheated markets are starting to see a leveling of housing inventory while sales numbers in many of these same locales have been trending upward over the past year. Additionally, there does seem to be a fair number of cash buyers who are seriously looking and already beginning to pick up property as a viable investment alternative rather than sticking with the current madness of the stock market.
In regards to housing, prices may have further to go but they have already come down a lot. Timing is everything but, timing doesn’t need to be perfect, it just needs to be reasonably good.