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Tonight and a very special -- Meredith Whitney is one of Wall Street's most famous Oracle's she predicted the sub prime crisis.
And now she is back with the new book -- of the states.
That is rewriting the geography of the US we are going to talk about all of that is fantastic book.
And why she says of the central border the country is poised to become the new economic backbone of America.
But on -- day when the markets -- triple digits we've got to start with some of the biggest issues.
That are facing our economy today so let's get started -- thank you so much for coming on the show -- here and or somebody -- -- crystal ball as well we're.
-- -- in your brain.
There have been a couple really big questions that have been on the minds of markets lately one of them is housing.
We -- terrific show earlier that day here on the network that was devoted to talking about the housing market.
Because it seems to be exploding again.
I mean a lot of areas we're seeing housing prices really climb back and my question for you.
Since you saw the first one coming in everything that came with it.
Do you think.
That we are on the precipice of another housing bubble yes -- now.
You have homeownership rate and they homeownership rate right around 65% of I have to go below 64% to normalize.
It got close to 70%.
And 2006 that was the peak and that was what was really driving home prices so I think what's going on right now is you're bouncing off the bottom and you're having double digit bounces off the bottom it's take Arizona Phoenix Arizona as an example.
The market's up over 20% hearing here but still off 45% from the peak -- you're dealing with a very.
Big bounces off a very low bottoms now there are exceptions this market exceptions and Miami and New York we have a lot of foreign buyers they're -- probably cash buyers and remember it's like the art world that did know know your customer laws so.
I -- you could argue it's a great place to park cash.
Saying you think I mean so what do you think in those cities and particularly -- and he keeps going when you talk about new York and Miami where we've seen a lot of appreciation you have the outside buyers is that good or bad for people that are in those cities.
Well I think it's great for the very high and right so group of investors just want to get came together and bought a ninety million dollar apartment in New York and yet you see that very very high and doing well all like to high -- art market the -- market cataract -- -- -- average -- not doing so well in certain areas they are.
Better than they -- but it gets off very low levels so you still have a pretty sizable amount amount of negative equity where people -- more on their mortgage than their home is worth so what would you say to the average person out there is trying to figure out where they are in the market if they should buy or sell right now do you think it's a -- -- market.
I think it summed it all depends Leo most people make a choice of buying a home not as a basis and that's not right they'd do it because -- -- -- -- They want to live there and a oftentimes because the US economy is the only one with a thirty year mortgage.
It's not an odd people argue it's more affordable to buy and few would argue it that for a long time it's been more affordable by -- -- But that's about -- indicator greatest -- -- goes back to look and has been saying -- incorrectly that we think we've reached a bottom in the housing market.
Because it yet the -- it's it's more starts to -- that clearly hasn't been at at best having to go by and be right about.
Yup I everybody feels good but that housing is often the bottom I just don't know how far off the bottom -- that -- --
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