Supply and Demand, meet Prices. Florida housing crash and mortgage meltdown makes international news as Brit flippers get slaughtered.

Do home sellers have any idea how bad it is out there (and that it's just gonna get worse)?

Home ain't selling? Hint: it's the price stupid. It will always be the price stupid.

Good article from the International Herald Tribune, read by tens of thousands of Brit flippers getting slaughtered in housing-crash-central Florida:

The celebration is over as Floridians are battered by the housing slump

Until the housing slump hit two years ago, the worst thing that Floridians feared was the hurricane season. Now, they are in the middle of a different type of storm.

In some areas of Florida, real estate prices have fallen by as much as 40 per cent since the height of the property boom in 2005.

Craig Studnicky, of International Sales Group in Florida, another property broker, said: “We are having to cope with five or six years of oversupply. Right now, the market is a Mexican stand-off. There are buyers out there, but no one wants to drop their prices. The market is at a complete standstill.”

Has this housing bubble and crash been textbook Econ 101 or what?

I feel sorry for people who haven't taken an Econ 101 class, or listened to ignorant and corrupt realtors on commission who don't even have high school degrees, but damn, is this mania, panic and crash straight out of the textbook or what?

Adam Smith, John Kenneth Galbraith, John Maynard Keynes and Milton Friedman would all be smiling today - and renting!

And they'd all be pissed that the two NAR hacks David Lereah and Lawrence Yun call themselves "economists". What a disgrace to the profession.

Sacramento California crashing home prices and exploding inventory graphs

OK, I'm having a tough time reading these two graphs. Not sure if I see much of a trend. How 'bout you? I guess if you look real hard. Oh, I give up. I guess I'll just go ask a REALTOR to tell me what they mean.

Inventory can't possibly be exploding at such an amazing rate. Prices can't possibly be in such a panicked freefall. Suzanne researched it! Lawrence Yun says this is a normal market. Bernanke says the worst is behind us. Bob Toll says we hit bottom. RealtyTimes reports now is a great time to buy. And we all know that real estate is always a great investment, and that the Property Ladder only goes up and up and up and up.

Or not.

By the way, take this housing data research website for a spin of the bubble cities. You'll be amazed. It's ugly out there.

Why don't the monkeys who are paid to understand basic economics understand basic economics?

Why do housing "analysts" and the Fed continue to be "shocked" and "surprised" by the length, severity and breadth of the housing crash?

Are they truly that dumb?

I also love when I read in the MSM that "nobody" anticipated this decline. Uh, ever read HP or any of the other bubble blogs? Or read The Economist?

I understand when realtors, mortgage brokers, homedebtors and shoe shine guys don't understand this stuff. Especially considering the pathetic state of the American education system and dumbing down of the MSM. But come on, you're telling me The Federal Reserve doesn't get it? IF that's true, that's pretty scary.

Maybe we should send a copy of Manias, Panics and Crashes to all of 'em. You'd figure in economics class (assuming to become an "analyst" you have to go to college) they'd cover this stuff.

After the biggest bubble and financial mania in the history of humanity, you'd think they'd understand that it's a long, long way back down.

Fed sees housing correction dragging on

The correction in the US housing market will “probably persist longer than previously anticipated”, Federal Reserve policymakers judged at their last meeting, according to minutes released on Wednesday.

The minutes show that Fed officials meeting on May 9 were concerned by the decline in new home sales and the rise in the inventory of unsold homes relative to the rate of turnover.

Most of the members of the Federal Open Market Committee felt that weak residential investment would “continue to weigh heavily on economic activity through most of this year” – longer than expected.