Lender Processing Services’ Home Price Index (hat tip Calculated Risk)
“In August sales transactions data, we saw the national average home price decline 0.9 percent, following a decline of 0.4 percent in July. This ended a series of increases during the spring of this year; a pattern that has occurred each year since 2009. In addition, the early, partial data for September sales indicates a likely further decline of approximately 1.1 percent to come. As of the end of August, the national average home price was $205,000. This is down 3.8 percent from August last year, and down 0.4 percent from January 1, 2011.”
Krugman on Supply Side Stimulus: basically discusses the borrower/lender identity and how this vital link fails at low interest rates and depressed economic activity. If borrowers repay but savers do not spend, then borrowers cannot repay. Also, discusses the issue of marginal return on capital and implicitly (my read) the fact that traction necessary for a resurgence in real growth may not occur until capital and debt has been depreciated/defaulted. At current debt/capital stock levels there is insufficient return on capital to justify the investment risk.
From Rortybomb: these articles highlight a number of growing social issues. A good question is, how long before the latent energy in these issues transmute?