HUGE hat-tip to Mish's Global Economic Trend Analysis for these dandies from the bizarre, confused, corrupt and possibly psychotic Mr. Lereah at a private meeting of real estate pros, as quoted by real estate pro Mike Morgan.
After reading these, you'll understand that Mr. Lereah is at times brutally honest (but never in press releases or public meetings) and at other times the most confused and incompetent economist in the profession:
“Some builders will get caught with their pants down, because they built too much”
“Naples Florida is even worse. Misery loves company.”
“If you have a healthy local economy it is almost impossible to have a bubble burst!”
“You have a great future in real estate, but you need to cleanse your real estate markets. We made a mistake. It’s going to hurt. You are going to have a double digit drop. Expect it.” And in his very next breath, “2006 will be the best year ever.”
“The laws of supply and demand have not been revoked.”
“Is this a bad year. Yes. Your numbers will down. You got ahead of yourselves. The market got ahead of itself.”
Lereah said it will be the “middle of 2007 when you start to pick up again. I see Florida picking up in 2007. But there are particular markets that will not. It depends on inventory levels.”
“40% of all loans in 2006 were interest only. . . Prices went higher because of the artificial energy in the real estate market . . . that’s what took the punch bowl out of the party.”
He continued to paint a rosy picture by stating that real estate was the, and I quote, “new gold standard
April 28, 2006
FLASH: David Lereah, NAR Chief Weirdo, with some more wonderful quotes
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18 comments:
Remember that not all sociopaths are serial killers. Many go into politics and business, where their charm and ability to lie with impunity tend to make them very successful.
Lereah is probably one of these.
Keith,
From hereonin, please refer to him as Mr. Diarrhea to more accurately reflect what spews from that hole in his face.
Let's not be too hard on him, he's only been doing what everybody else has been doing.
Everyone touts their own specialty.
Bernanke touts fiat money printing.
Lereah touts real estate.
Cramer touts stocks.
Bush touts war.
_____ touts ____?
Buying RE at these prices is like gold at $1800/oz
You are buying at the peak and could be facing a brutal drop in prices.
This article appears in the April 28, 2006 issue of Executive Intelligence Review.
HYPERINFLATION LIKE WEIMAR 1923
World System on Weimar
Collapse Curve
by Lyndon H. LaRouche, Jr.
April 20, 2006
The fakery of the outgoing Alan Greenspan administration, in burying the "M3" report, was clearly intended to conceal the fact that the rate of rate of increase of world prices of primary materials has the world as a whole currently on the same kind of "least-action pathway" curve of hyperinflation which gripped Weimar Germany during the second half of the year 1923.
Comparing the present rates of rates of increase of primary materials prices with the pattern for Germany 1923, indicates the likelihood that, under present U.S. and European policies, the world system could reach a point of collapse of the monetary system by not much later than September 2006, if not earlier.
Under the present trends in policy-making in the U.S. government, both in the careening economic-financial lunacy of the current Bush Administration, but also the "Alfred E. Newman"-like diffidence of a negligent U.S. Congressional fraction of the Democratic Party, the likelihood is that the world system as a whole will be in a U.S.-dollar-triggered collapse-phase before Autumn.
The point is not to predict what could happen by Autumn; the point is to kick the relevant political circles in the Democratic Party with the proverbial two-by-four prescribed for reluctant donkeys, and to do so hard enough, soon enough, and often enough, to move to the kind of emergency reform of U.S. policy which could stave off an otherwise onrushing general breakdown-crisis of not only the U.S. system, but the world system as well.
There is a relative handful of persons, typified by the Brookings Institution-based Hamilton Project team, who are capable of understanding this, and who already have command of most of the essential facts to be considered. There are professionals in other parts of the world, who could begin to understand this quickly, if they were kicked hard enough to come to the necessary state of wakefulness.
The world is thus, now, in the terminal phase of a hyperinflationary collapse of not only the dollar-system, but the world-system as a whole. To bring this into focus, consider the elementary features of the way in which Federal Reserve Chairman Greenspan's lunacy orchestrated the 1987-2006 phase of the relevant hyperinflationary cycle. Keep three illustrative curves in view: 1.) my "Triple Curve," which, since January 1996, has described the general characteristics of the ongoing collapse-function of the 1995-1996 interval. The curve of 1923 Weimar, Germany hyperinflation; and, 3.) The current hyperinflationary rate of rate of increase of primary commodity prices, as led by petroleum and metals.
(Leave the "supply-and-demand" freaks, and other statisticians from Swift's Island of Laputa, to play with themselves behind the barn, where they will be happy.)
Essentially, what Greenspan did, was to bail out the banks whose coffers had been emptied by the events of October 1987, by laundering the mortgage-based securities packages of Fannie Mae and Freddie Mac. The real-estate bubble was built up to its presently cancerous proportions for this continuing purpose. This, in turn, provided the baseline of monetary and derived financial emission for what was to become a hyperinflationary expansion of a physically contracting economy. (See my Triple Curve.)
In the end, this became the core of a global financial-monetary bubble comparable to that of medieval Venice's tool, the Lombard League of Europe's Fourteenth-Century collapse into a New Dark Age. However, in this case, the end-game phase of this hyperinflationary process was cornering of the world market in primary materials.
For those shrewd enough to recognize that the present world financial system is already hopelessly doomed, the witting class of predators must have a "landing place" outside the bounds of such a general financial-monetary collapse. Essential raw materials represent that landing-place.
Therefore the rate of inflation of the rate of inflation in the market for primary commodities is the characteristic curve of the present world monetary-financial system. This rate of rate of inflation, as reflected in the concealed behavior of M3, is the curve which corresponds to the Weimar Germany hyperinflationary curve of June-November 1923.
Underneath it all, is Leibniz's catenary-cued principle of physical least action, the fundamental principle of the Leibniz infinitesimal calculus and Leibniz's original correct discovery of the natural-logarithmic function derived from the double-catenary characteristic of the least-action principle. The comprehension of such systems in general, is found in the work of Riemann on hypergeometries.
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Over-the-top commentary on the Phoenix amateur flipper game on KJZZ (local NPR affiliate).
Look on their website under "Real estate coaster leaves one man in the dumps."
This is going to freak some people out in Phoenix.
I don't believe that article was in any kind of magazine. The reference to "playing with yourself behind the barn" pretty much proves it.
LaRouche is a clown. Didn't he go to the slammer for tax evasion?
Alfred E Newman appears on every Presidential Ballot as "You could do better"
"What me worry?"
Keith,
Since you started this blog you've posted about Lereah twenty times. Yet we know his background and credentials. Everybody knows who he works for, so his bias is hardly surprising to anyone with a pulse.
Oh, but what about you Keith? It's not like you're posting about freedom of speech in China. Why the cloak of anonymity?
p.s. Not that I agree with Lereah's analysis or position, but verbal comments taken out of context can easily be mashed up to look ridiculous.
Larouche is king of the asylum...wanted to win the drug war by arresting Queen Elizabeth. And that was one of his better ideas.
But he's not wacky enough to believe in the rapture or the Antichrist or a Warrior Jesus....
Maybe he should run for President again. He might win and we'd all be better off versus the current lunatic leadership....
Is Larouche crazy enough to believe the current leadership planned the 9-11 attacks and the hijackers were actually CIA agents on suicide missions?
Popular beliefs of the left-wing morons:
McDonald's is evil
Communism actually works
Missiles hit the WTC & Pentagon
LMAO
OOOOOOH!!!!!!!!!
Big bad Mcdonald's is out to poison and kill all its customers
HAHAHAHAHAH
Hey, but the sugar and fat filled drinks at Starbucks and other coffee houses are OK because it's cool to hang out there and talk about the virtues of Communism as long as you don't have to live under it.
Duh!!! most people who dislike Starbucks feel the same way about McDonalds! And yes, McDonalds has done nothing to ever benefit society since Ray Kroc bought it from the McDonalds brothers, and turned food as we knew it into a name brand.
Starbucks does the same thing! Go get yerself an edumencation.
right wing blowholes believe:
McBush is honest.
There were WMDs in iraq.
Jeff Gannon was a real reporter.
Mann Coulter is brilliant.
nuff said
ok 15 year old. HOW HAS MCDONALDS HELPED SOCIETY? Come on now, tell me.
The big mac
Need i say more?
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