Per RealMoney.com contributor Dan Fitzpatrick, behold some somewhat obvious but nonetheless poignant words I believe are worth noting related to what's needed for a BOTTOM + Sustainable Recovery in U.S. Housing/Real Estate prices:
The Order of Economic Recovery
By Dan Fitzpatrick
9/19/08 11:30 AM EDT
"Just a quick note this morning. Those who are eagerly looking at the real estate market with optimism that the worst is over are looking the wrong way. Houses are the ultimate Big Ticket Item. They are generally not bought until the consumer feels confident in his earning capacity by way of a steady JOB with upside potential. We need an economic recovery BEFORE real estate moves higher...not the other way around. It has always been that way, and will always be that way. Not my opinion -- it is a fact."
---------------------------------------------------------------------
* Anecdotally thinking and speaking of real estate, one of the select FEW pockets of strength for the post-2005 U.S. real estate market was Manhattan, New York. This will most certainly NOT be the case moving forward for at least the next 5-10 years following the EPIC collapses of former WALL STREET giants Bear Sterns (the artist formerly known as BSC), Lehman Brothers (the artist formerly known as LEH), Merrill Lynch (MER...soon to become a piece of Bank of America/BAC), American Insurance Group (AIG...now 80% owned by the Federal Government), etc.
In attempting to quickly assess the potential Ramifications of a WOUNDED Wall Street to NEW YORK's economy (and therefore to New York's real estate market), it should be noted that per August 2008 comments from Thomas DiNapoli (
* Wall Street firms make up approximately 20% of New York STATE's total tax revenues
* Wall Street contributes about 9% of New York CITY's total tax revenues.
bloomberg.com/apps/news?pid=20601087&sid=aYhqIluVHh7U&refer=home
Data Courtesy: Realmoney.com (subscription only) + Bloomberg
Posts
