Scenes from the recession

[Peanut]

Okay. So all the pictures of the vacant lots and partially constructed homes... can someone explain to me whether the "new home" industry and it's pace of construction was ever sustainable? I understand it's an industry that employs people (lots of people) and to have it in a major downturn is impactful to other industries as well (lumber, etc). But there isn't a never-ending supply of people who need new homes, is there? The population is just not growing that fast??

I don't know, maybe I'm missing the point or being too cynical. But the whole new homes thing just invokes a "what else were they expecting?!" type of reaction from me. You can't keep building new suburbs forever when there isn't a supply of owners to buy them (and live in them).

I think the same sort of argument can be applied to the auto-industry. People don't ALWAYS need new cars. And convincing North Americans that they need to upgrade every year or two using loans and credit wasn't really a sustainable plan either.

Not that I have any better ideas or that the whole economy thing isn't a bit frightening, but... I guess I just don't find it surprising.

ETA: I wear lip gloss and I used to smoke. Looks like Brittany is smoking to me...

[4X4]

Couldn't agree more. (all of it, not just the cig thing)

[Resolute 14]

A former AIG executive shortly before discussing how the global economic crisis has affected his customers.

[Jedi Ninja]

Originally Posted by Peanut

Okay. So all the pictures of the vacant lots and partially constructed homes... can someone explain to me whether the "new home" industry and it's pace of construction was ever sustainable? I understand it's an industry that employs people (lots of people) and to have it in a major downturn is impactful to other industries as well (lumber, etc). But there isn't a never-ending supply of people who need new homes, is there? The population is just not growing that fast??

I don't know, maybe I'm missing the point or being too cynical. But the whole new homes thing just invokes a "what else were they expecting?!" type of reaction from me. You can't keep building new suburbs forever when there isn't a supply of owners to buy them (and live in them).

...

The population growth rate of the US is the highest of any industrialized nation, at 0.88%. They have a strong birth rate and also a strong immigration level. Because of social changes, the number of households are growing at an even faster rate. A generation ago, the average household size may have been 5 persons (just a guess), whereas today due to smaller family sizes and split families due to divorce, the average household size is much less. So, even at the same population level, you'd have more homes.

[FurnaceFace]

Some of those pics don't jive for me. A supply of unused paper boxes and a pile of ship containers indicate a down economy? Perhaps that's normal or the photo is taken to make it look worse?

My other thought is man I gotta look at buying some cheap arse properties in the US. The prices won't be down forever.

[Peanut]

Originally Posted by Jedi Ninja

The population growth rate of the US is the highest of any industrialized nation, at 0.88%. They have a strong birth rate and also a strong immigration level. Because of social changes, the number of households are growing at an even faster rate. A generation ago, the average household size may have been 5 persons (just a guess), whereas today due to smaller family sizes and split families due to divorce, the average household size is much less. So, even at the same population level, you'd have more homes.

Okay... but it still doesn't really answer whether the rate of new building was/is outpacing demand.

[blood_hound2005]

http://letsgetfinancial.blogspot.com/

[4X4]

Got any more threads you're gonna pimp that link in?

[ricosuave]

while I don't wish bad on anyone, it does kind of seem like this is capitalist america's own doing.

it was and is ridiculous that society could sustain that kind of resource abuse, population growth and simple blind-eye turning without anything happening.

sure, its worldwide, but cmon, all roads in this giant mess lead straight to washington dc.

a bunch of little things have built up to become big big issues and now, there is almost no way to turn this back, at least not without a major shakeup and overhaul of the way capitalist does its worldwide buisiness, and sadly, even now, it doesnt look like THIS is enough to change peoples minds.

mark my words, this is not the end of this, not by far. people have to learn, adapt and change NOW.

[DementedReality]

Originally Posted by FurnaceFace

Some of those pics don't jive for me. A supply of unused paper boxes and a pile of ship containers indicate a down economy? Perhaps that's normal or the photo is taken to make it look worse?

My other thought is man I gotta look at buying some cheap arse properties in the US. The prices won't be down forever.

i have been to HKG many times specifically to be at the port and it is the 2nd busiest port in the world, that did not look any different then when I was there at anytime in the last 10 years of my travels.

[4X4]

Originally Posted by DementedReality

i have been to HKG many times specifically to be at the port and it is the 2nd busiest port in the world, that did not look any different then when I was there at anytime in the last 10 years of my travels.

And half of the rest of those China pictures are recycled from other ominous stories about how China is overpopulated/China's line-ups for new electronics/China's lack of bathrooms...

I dunno. I guess I'm jaded by sensationalism. I can't open one of these "photo journals" without wondering what angle they took the picture from and whether the picture is actually evidence of the caption.

[RougeUnderoos]

The Big Picture is one of the best things on the interwebs, but this one is a bit of an eye-roller.

We are obviously not in a good economic climate right now, but photos of "abandoned" construction projects in Kiev and Sofia don't really scream "Its All Come Crashing Down" to me.

The photos from the States of the big empty houses sitting on wide abandoned streets paired with the thousands of unsold new automobiles does say something, though I'm not sure what it is.

[DementedReality]

Originally Posted by 4X4

And half of the rest of those China pictures are recycled from other ominous stories about how China is overpopulated/China's line-ups for new electronics/China's lack of bathrooms...

I dunno. I guess I'm jaded by sensationalism. I can't open one of these "photo journals" without wondering what angle they took the picture from and whether the picture is actually evidence of the caption.

maybe a little off topic, but the thing that really catches my eye in the HKG pictures is the apartments in the background. those clusters easily house a few hundred thousand people and they are non stop through out the area. its so mind boggling how many people they cram into that place. when you fly in, you think everyone lives in a skyscraper and then when you get close you see all the laundry hanging out the window. what a life, but not one for me. i cant ever wait to get out of Asia.

[4X4]

Originally Posted by RougeUnderoos

The photos from the States of the big empty houses sitting on wide abandoned streets paired with the thousands of unsold new automobiles does say something, though I'm not sure what it is.

See peanut's post ~10 back.