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-- -- some positive news for housing today existing home sales and expect unexpectedly.
Climbed by two point 1%.
And home builder sentiment rose to its highest level in more than six years so how solid is this recovery my next guest says.
That while the data is welcome news we're really just back to 2007 levels are well -- -- -- -- business finance professor.
At George Mason university and he joins us now.
I know rolling back to 2007 but you gotta start somewhere.
Well this shows you how bad the housing bubble was -- the bursting of the housing bubble.
So is taken all these -- just to get back to 2007.
So release there.
But they home builders' confidence index is still below fifty rising highest level but still below fifty.
So -- work what to do we got.
We have a lot of work left to do you think how we stacked up and -- signs like -- to feel like we've put in the bottom.
And we're now working airway out the other side -- -- this -- you mentioned it is still six year high even though it's below fifty.
You know existing home sales that's all already and that -- always really positive.
And it what do you think what we we put in a real bottom.
-- Here's why.
You just talked about it before we Charlie Gasparino is the fiscal cliff which I -- -- the fiscal foothills because once we clear the foothills we still have this enormous debt -- That's not solvable so even if we get past this we have all the obamacare taxes twenty or more of them.
Hitting everybody so even if they back off -- taxes for a year.
People are still liable for the Obama care taxes so I think -- households get a load of all these massive new tax increases.
I think we we might see a little slowdown in the housing recovery -- Think -- -- by virtue of it seems to me that by virtue of the election that just went by people don't realize that but they don't realize that obamacare really needs a massive amount of taxes and -- You know all -- the fiscal -- that actually they're going to be paying for all this stuff that they're hearing about all the spending so people are nigh -- to what's really coming down the -- get them.
They can still be positive about housing as they don't realize what's coming.
-- that's true -- standing on line voting I felt like yelling the entire place you know what's gonna happen to our taxes but of course that's a legal.
I wouldn't do that -- I think look I think here you've got the -- hit the nail on the had I think most people does have this.
Sort of not lemons approached the sort of -- La La land that we can keep spending and spending and borrowing and bargain -- never been parents ever -- -- -- developed.
So I don't see someone else us -- -- -- Can't handle it -- -- other argument for housing was just that.
In the governments are working so hard to god forbid you make a dime they wanna take it away from you still -- -- It's sort of invest in something an asset and a law all long term holding a sort of high in Germany there for a period of time and hope that maybe at some point in the future.
You -- and other sentiment prevails and and we're not out taxing everyone to death so real estate is one of those things you -- -- gold.
You -- -- real -- -- so low they're giving the Fed's giving away money you can bar really cheaply.
Why when you buy a property that you know you wanna hang on to for five or ten years right now that's an argument for housing.
-- I think it is good argument for housing.
But the problem is going -- the Consumer Financial Protection Bureau under Richard -- rate is going to be making it tougher and tougher for.
Banks want a loan people money into the rules and regulations you have to go throw compliance rules or does -- -- can be staggering.
-- see how many lenders really wanna participate in this market when all you've got left last man standing as the FHA.
OK so Anthony whatever it where I guess we're moving to Bermuda -- -- there for the Bahamas thanks god we appreciate it.
I think that's a lot I -- to be positive but it's just gives me.
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