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My only quibble here is the use of the term "artificial." Just like I think it's a "natural" market result at the moment with banks slowing down taking delinquent properties to sheriff sales, I don't think it would be "artificial" if they chose to speed up tomorrow, unless they were doing it in response to government compulsion.
And I second Hts' point, which was part of my own point that I should have been clearer about. The banking industry may be more concentrated than the aggregate market of individual prospective sellers, but it's not exactly monolithic.
Without weighing in one way or the other, I would note that the "banking industry" is not a single entity
Many banks have already realized a significant portion of the losses from the housing collapse. Remember, the collateral is nice, but from the bank's perspective, the real asset they want to have is the performing loan. When the loan stops performing, I'm pretty sure that the bank has to recognize some hit (not 100%, of course) to their portfolio then, not just years later when they finally sell the underlying collateral and apply the proceeds to the loan balance. Likewise, even if they pursue the borrower for the deficiency judgment for the two years that Ohio permits such deficiencies to be pursued, I'm pretty sure they still have to recognize some losses even before then.
Psssst -- sometimes when I have a few extra copies of Mario 3 at work I hide some of them rather than lower their price.You didn't hear that from me.
Quote from: GCrites80s on June 26, 2012, 05:49:42 AMPsssst -- sometimes when I have a few extra copies of Mario 3 at work I hide some of them rather than lower their price.You didn't hear that from me.And you can do that. It only becomes an issue when the whole market is affected. With all due respect, that's probably not an option for you.
I'm still not really seeing the "restricting supply" paradigm here. Am I restricting the supply of used 2001 Altimas by not listing mine on Craigslist? Why does it make any qualitative difference if I had 5,000 used 2001 Altimas and was refusing to list them, or was only listing them in batches of 50 so as not to flood the market at once? If I'm willing to pay the upkeep costs on the other 4,950 and watch them depreciate, isn't that a legitimate economic choice (regardless of its wisdom)?
Something tells me it will get deeper.Britain's recession deeper than feared"Britain's second recession in four years is deeper than originally feared as figures showed a sharper decline in the economy during the final quarter of last year."http://www.urbanohio.com/forum2/index.php?action=post;topic=17905.3780;last_msg=628005
^ The one thing I'd caution you on viewing month to month numbers is that there is always a slowdown in production during the summer months. Typically new orders remain flat or drop through summer months, then pick back up in the fall. Part of the natural rhythm of the annual manufacturing cycle. I'm more concerned about the drop in commodities prices as an indicator of global demand. Anectdotally, a lot of my client bases' success over the last couple years has been either directly, or indirectly, attributed to export sales.