“The median price on a house or condo sold in Detroit last month plummeted 57%, to $9,250.”
No, there aren’t any numbers missing. That’s NINE thousand, two hundred and fifty.
2 thoughts on “Unbelievable, but true, line of the day”
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It’s scary to think that in the U.S., even before the fallout, a median price for any house was as little as $20,000. BTW, where’s the data that is telling the stock market and the fed that banking credit sucks right now? Especially for my bank. Why does the federal government now own a portion of my bank?
Keep in mind the figure is the median. That means that half the properties in Detroit sold for less than $9,250 last month.
The difference between the return on the safest investments (U.S. treasuries) and riskier investments (bank loans) is significantly greater than the norm, indicating that credit is not flowing freely. Everyone is afraid to loan for fear the borrower will default (like Lehman Brothers did).
If your bank accepts the federal funds it is probably because your bank is under capitalized. Just about every bank in the world is and many will fail (and some already have).