CNBC Losing The Poms?
Every now and then in my research I come across comments that CNBC was guilty of being a cheerleader for the stock market boom of the nineties. One business news anchor in particular, Maria Bartiromo, aka “The Money Honey”, seems to be the recipient of much of the flak. Personally, I am always suspect of business news channel programming due to the presence of network sponsors whose bottom lines depend on rosy economic news and bullish investment commentary. Turn on a business channel during the day and you’ll see numerous commercials for brokerages, for example. I wonder if there’s not hesitation to “bite the hand that feeds you”?
Yet, I was surprised last week when I came across some commentary by Diana Olick, CNBC’s real estate reporter, on their website. A few days ago a survey was released by Reuters/University of Michigan that looked at homeowners’ perceptions of their own homes’ values. According to the survey, a record 26% of U.S. homeowners say the value of their homes has fallen during the past year. Additionally, 21% of homeowners polled in September expect the value of their home to decline in the year ahead. Ms. Olick said that all the “Alert” desk folks at CNBC said, “Omigod, this is huge.” Her respose was, “I don’t agree. I say it’s not huge enough.” Diana points out that the latest S&P/Case Shiller survey, which covers the nation’s top 20 metropolitan areas in addition to a full national index, shows falling home prices now and, given the trend, in the near future. Given the evidence, Ms. Olick asks:
So why do 74% of Americans not get it?… With all the trouble in the credit markets, continued adjustable-rate mortgage resets, and rising foreclosures, not to mention continued sky-high inventories, what exactly makes ¾ of Americans think they’re going to make big bucks on their homes this year?? This is precisely why homes aren’t selling. Sellers are stubborn; they just don’t get it. Prices during the boom were unsustainable, affordability is now ridiculous, and continued price appreciation makes no economic sense in the current atmosphere. The boom-time price inflation in homes was thanks to a faulty mortgage system, which is now in the process of righting itself, and home prices rightfully have to fall in line. Do I like writing those words? Hell no! I own a home. I like money. I also like logic. Sue me.
Wow. Couldn’t have said it any better myself. Unfortunately for Diana, I don’t think she is going to be asked to any Realtor functions anytime soon.
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