Is this 2008 All Over Again?

Critics from various backgrounds keep saying that the United States' economy has not improved since 2008. According to the Case-Shiller index, this very well may be true. The retail housing market was at the center of attention in 2008 when the American economy took a turn for the worse, and it appears that it may still be experiencing downward pressure.

There are several Case-Shiller Indices, tracking various demographics. Today, the 20-city composite index, which includes cities like Los Angeles, New York, and Seattle, declined by 3.6%, indicating worse housing prices than what analysts estimated.

Given the poor data, analysts came out to say that housing demand may further weaken in 2012, especially considering that distressed homes have yet to be turned over. While distressed properties may or may not be artificially altering overall housing prices, the fact that they continue to have a drastic impact on the American housing market is a negative sign.

Many people have hoped that the United States has been improving over the last several years, but there seems to be conflicting signs to either side. On one hand, many companies are performing extremely well, garnering significant cash flows and still profiting despite economic uncertainties. Moreover, consumer retail performance, like that seen during the Black Friday and Cyber Monday sales, appear to be extremely positive for retailers.

The situation for the general public seems to be more grim, though. While corporations are doing well for themselves, people are still sitting with a 9% unemployment rate. Housing prices continue to decline, indicating waning demand, and the possibility that prospective homeowners simply cannot afford houses at these rates. The layperson's portfolio has also been taking a hit since July 2011, when the general markets fell significantly. Oil and gas prices ran up during the fall months, forcing Americans to pay higher prices at the gas pump.

While economists and analysts can bicker back and forth about the economic condition, the housing data clearly points to a depressed housing market. The lack of improvements in housing prices; and tangentially, the Case-Shiller index, could imply that Americans are having trouble trusting or affording something as essential as a home. This notion does not bode well for the bulls.

The S&P 500 Index is hovering at the $1,200 mark at the time of publishing, down approximately 4.6% for 2011.