Bubble alert: The housing bubble reinflates again


Cheap adjustable rate loans plus an insane derivates market brought the global economy crashing down nearly a decade ago, and now the housing market is reinflating, fueled in large part by more of those adjustable rate mortgages.

Those cheap loans triggered a massive housing price inflation, as loan officers signed off virtually all buyers, thanks to those robosigning machines [which are still very much in use].

And given that President-elect Trump has stocked his cabinet with Wall Street banksters, an Associated Press news story should send chills down our collective spine:

U.S. home prices rose again in October as buyers bidding for scarce properties drove prices higher.

The Standard & Poor’s CoreLogic Case-Shiller 20-city home price index, released Tuesday, rose 5.1% in October from a year earlier after climbing 5% in September. Prices for the 20 cities are still 7.1% below their July 2006 peak.

The broader Case-Shiller national home price index was up 5.6% in October and has fully recovered from the financial crisis.

Prices rose 10.7% annually in Seattle, 10.3% in Portland and 8.3% in Denver. New York registered the smallest year-over-year gain: 1.7%. Los Angeles prices rose 5.7%.

From the Federal Reserve Bank of St. Louis, a look at the course of the housing bubble through the end of July:

blog-housing-homes
And it’s not just home prices that are soaring. Rents are rising dramatically as well, another bad sign of a developing crisis:

blog-housing-rents

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