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Ray King you were Charles Davies with this now a contributor and host Joseph the Fox Business Network and CE OW street.
Dot com always to deceive the -- -- -- now do in the 2 o'clock show in the afternoon with the Shibani Joshi has happened on a lot of fun lot of fun yeah and you could see him every day on thorny and company which follows the show.
At 9:20 eastern -- so before.
We get to Barney -- Your friend was in here earlier this of course is always worked up about something in today's topic happen to be the front cover of the front destroy the New York Times which is about housing we're gonna get these home price numbers at the top of the hour from case Shiller.
The time saying house price is set to hit another -- and more people because of the weak market are deciding to rent.
So the case the argument now is whether this.
Dream of homeownership in the United States has been here for so many years is kind of either turning into a nightmare -- just going away completely.
-- -- -- Was still play a nightmare for a lot of people who got in and in last five or six years but.
I don't think it's going the way I do believe people are really very very nervous about you know getting our house now whether the time is right people think they compete the bottom of anything whether it's the stock market -- the housing market.
I -- guarantee a lot of people were contemplating buying a house are probably the paying more.
The less because they'll wait one or two years and you know later than they probably should -- pulled the trigger but.
Now having said that.
It's also tougher than on home to you know -- we were pretty screaming.
About these evil banks -- And and in -- -- awful ways and we got all these different you know regulations in place.
This the consequence of that it's hard for a lot of people were really credit worthy to even get a loan to -- -- house right now so it's a tough situation what.
Would you tell us and nest year your other job so to speak giving people advice financial advice you can someone comes to insist Charles.
-- you know I sold my house -- there's a guy in the article sold -- house in August of 06 right at the top of the market and has been renting ever since.
And I guess the apple logic as well prices might go down even more -- -- -- -- by now if you have someone attendees at.
Boy I've been renting it I'm thinking about it maybe I don't need -- -- -- -- maybe I'll just keep -- firm.
Who knows how long would you tell them no you shouldn't you should think about buying a house or or -- just say no you're you're on -- something.
I would actually tell -- -- consider buying a house of some point and I think now's a great -- -- -- sense that you can drive the bargain if you don't get too pricey you want you can always walk away.
And but you wouldn't go into looking at flippant a year from -- -- six months from now but I still think it is this sort of the cornerstone of the American dream.
I think we'll look back 510 years from now Tony is announcing Cali in -- sort of bought a couple of houses in on the Texas once you have.
Yeah I definitely think it's a much better deal than the emirates and although some cities if -- just go strictly by the numbers renting is still smarter.
-- although that's starting to change.
Lot of this is psychological or at least I think it is we're gonna talk to Bob Schiller at 11 o'clock today after these case Shiller numbers come out -- kind of what he gets into a lot of that to the way people psychologically C markets and how they feel about things and you wonder how this cycle is going to be broken where people think.
And -- evidence has been had been there so far but people just think well why should I buy because the price is gonna go down what's gonna change that is almost a trigger in people's mind psychologically this is now's the time now's the bottom I'm getting and.
-- it's a fantastic point -- because who were experiencing right now is a classic death spiral yeah you know people who took the bait for the government credits they grant credit card down -- their house he had big -- -- you're still losing money.
So you know I think a lot of -- may have to do with the jobs numbers the overall jobs number the overall economy.
That -- ruled you know convinced that role -- -- epiphany.
I'm not sure exactly where comes from but you're absolutely right we're right now -- a prime example of a death spiral.
Why people fear a Great Recession to things like that because people think the price is gonna go lower and -- in effect it's sort of a self fulfilling profit.
Cameron and economy it's -- it's funny when you look at.
We're an economy -- this is the right way to characterize it that if it's gonna get better it's getting better because it's propped up for one reason or another look at the stock market for this morning for example it's up.
It looks like it's gonna be way up.
Who knows after this number comes out of something changes or whatever the case may be by 930 but it looks like we'll open -- erupt 96 points right now -- Dow futures a lot of that's because people are assuming the Greeks are gonna get another.
Bail out -- housing had improved or the thought was it was gonna improve because things like that tax credit where they are -- to take things like that away.
Well the housing market doesn't look so good anymore once you take the idea that there's going to be bail outs away and -- concerns about restructurings or defaults the stock market doesn't look so good.
Animal you're right -- and that's one of the reasons I I believe and and people think -- cruel when you say but I I believe letting things free fall to where they should go.
Because I think it's almost cruel and unusual to actually.
Make it a longer term process than it has to be I believe that there yet the the business cycle would have kicked in already in this country -- naturally established business cycle that's part of capitalism especially American style capitalism.
-- out all the tinkering the short term -- would have been significantly greater.
But I think we'd be well on our way to recovery same thing that with the respect to the stock market I will load the seed that -- the time go from a weak dollar scenario.
To hey you know what these corporate earnings are fantastic.
Valuations are reasonable if not cheap.
You know that's -- -- the narrative drive in this market.
And I love to see strong dollar strong stock -- co existed that spot do you think it is that possible by the -- it is possible book and tear to your point 99 that's not the current psychological atmosphere weren't.
It's because people are.
Thinking about thinks differently people just looking for that you know did you look at the dollar you wanna over the market's -- dollar down.
The market up dollar up market down I mean and that's just the nutty crazy scenario but a lot of that will change.
-- we have a job to port number on Friday 550000.
Those are the kind of things that sort of sparked that general Tiffany that I think we're all waiting for do you.
Do you feel like.
Do you do you do you get the sense that the economy's improving do you think things are getting better.
Generally speaking now.
I did I get the feeling that we're bumping along sort of how would we get -- that on right where we have this quote unquote epiphany if it's not really it it has to have I don't know if you know -- -- -- -- the -- be -- to your point oh won't be something that can be manufactured by.
By government programs or any sort of initiatives it's something that's gonna have to be authentic and and I think it's gonna have to come from -- treatment I majored America's got to believe in and fill it.
And I don't think they do right now so how are you then you always found a way it seems like but how is set Charles -- make its money these days while -- that the stock a lot of stocks are doing very well because you know what never I don't think there's ever been in time and I try -- amateur historian.
Where all of the world's emerging.
Countries -- have been on the -- to the degree that they are right now.
And you know so whirlpool -- Washing machines and dryers and refrigerators they sell in Brazil gap in it's just amazing where you see I look did we just -- earning season -- -- last week who would wal mart's numbers.
You look at these earnings in the companies that did great they sell a lot of products in Mexico a lot of products in China a lot of products and India.
So this a legitimate there's a legitimate opportunities a lot of people making a lot more money in a lot of those cut.
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