Dr. Housing Bubble
13 Feb, 2012
Does anyone else find it remarkable how little mainstream coverage was given (is given) to the largest financial crisis since the Great Depression? Home prices have fallen deeper in this housing induced recession versus the economic despair of the 1930s. I know most readers have realized that the tube is simply a method of entertainment and modern version of soma and should be treated as such. Let us not even examine local news in regards to educating the public on what is truly going on. The reality is that so much disinformation is being thrown out that people seem financially paralyzed. For example, most Americans still don’t realize that we are making post-bubble lows when it comes to home prices. Even entertainment that incorporates previous bubbles like the mini-series Mildred Pierce centered in depression era SoCal and focuses largely on Glendale and Pasadena, seems to bring a tinge of déjà vu. To argue effectively that home values will appreciate you have to show why household incomes will increase. There are few that make a well thought out argument combing income and home prices and showing how home values will appreciate. The more data driven arguments seem to project a stagnant housing market something akin to Japan’s lost decades or further declines. What are some of the current trends in housing and more importantly, our economy?
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