Audio – Sad tidings

February 19, 2008

roubini.jpgNothing like kicking off the week with a dose of really grim news.

Nouriel Roubini, professor of economics at New York University, did just that on Tuesday morning at the Reuters Housing Summit with his thoughts on just how dire the real estate market looks right now and how tough it’s going to be for homebuilders for the rest of the year.

There’s not a lot of giggles here, folks. Roubini has been bearish on this sector for a long while now and many of the chickens he warned about are indeed coming home to roost.

Roubini was one of the featured speakers for this year’s summit, which continues through Friday in Reuters New York offices.

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We had to give up our house after owning it for 15 years. We had job losses leading to bad credit and bad advice on a refinance with a home that they valued 30K more than it was worth (this is significant on a home only worth $150k. HomEq told us that we could list the home for $130k, when forclosure procedures started and we had 2 offers that it took them 2 months each to turn down because of the loss they would have to take. They called me (HomEq) the day before forclosure asking me to call the last buyer and tell them they could have the house for $130k (the last buyer was long gone after 3 more months). We had a bad high interest balloon loan where the mortage company would not figure in our real estate taxes of $2k a year. We wanted to do a refinance on our own without our parents and were stupid. We got bruned by the appraiser and the mortgage company. Everything sounded so good but in fact was not real. Thank God we had a “vacation” property an hour away from where I was able to find employment. Going from a fully remodeled 1500 sq. ft. ranch in a beautiful suburban Kansas City neighborhood to an 800 sq ft 20 year old single wide trailer in the woods in a small town of 1960 people was humbling but the best thing that could have ever happened to an upper-middle-class couple. We will NEVER take out another mortgage and we will build a home that is within our means without a sleazy mortgage company telling lies. We learned that having things “for show” was only making ourselves feel better when we were around others – and not sleep at night knowing we couldn’t pay for what we had. By the way, HomEq sold the house for $114k. Much more of a loss than the solid offers we had. This is a monster the mortgage companies have created and the little guys like us are getting beat up on.

Posted by Michelle | Report as abusive