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Four and a half years since the housing crisis began, and spread to other parts of the economy. Much of it still remains to be cleaned up. With sovereign nations and their financial systems under stress after leveraging themselves to save the financial system many of the questions still remain unanswered.
We sincerely appreciate the honest effort made by many in the government, but since our job does not relate to that we shall confine our views to ourselves and focus on the aspect we love and are good at, i.e financial analysis.
While we have moved away from the mess, we think moving ahead without learning from the past would be a big mistake.Especially learning from a financial perspective. What where the signs that many missed ? What we produce here while not is exhaustive, still gives a clear sign of a sudden change from the linkages of the past , and a flight to the moons for housing prices in just a matter of few years.
We represent graphs for a few states, as well as the US-10 Composite regression graph with one time variable Price Graphed against time in a simple Linear Regression Analysis. What would be and is noticeable from the Graph is a sudden rise in price and an ultimate collapse. History tells us that housing prices do not go up more than 1-2 percent on a real basis in the long run.However looking at it from hindsight does not make us any genius, choosing not to learn from our mistake sure does proves ones intentions on improvements.
Without much of a due we present to you the graphs, data for the graphs can be requested at info@valueeinvestor.com.
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