Since then, the market has made me wealthy. Spell compunded earnings :^)
Posted on 08/15/2005 6:00:40 PM PDT by ex-Texan
No kidding. Is that why I can't go for a sunday drive anymore without hitting traffic? Is that why every farm is now a development for homes I can't afford, and all the woods I grew up seeing are now replaced with shopping malls?
"Home construction could easily fall back 40 percent (this was the drop off in the 1981-82 recession), which would imply a direct loss in demand equal to 2 percentage points of GDP."
Good.
housing bubble, global warming, asbestos tainted breast milk, yada yada yada
The population is growing
The land mass isn't
Real Property is Real Wealth
Tax cuts increased real income and spending power
Tax cuts have lowered the deficit by $150 billion already
Enough people got burned in the [Clinton] Tech Bubble and learned their lessons
Purveyors of gloom and doom are heavily invested to "short" the markets, betting on self fulfilling prophecy.
All of the slow rabbits have been caught.
And so the real question is....
Is it time to sell your mortgage REIT stock or buy on the (every day falling) dips?
They left out the fact that the "collapsed stock market" has been over 10,000 DOW just about 100% of the time since then.
Some collapse.
The Baby Boomers legacy is in full swing. Everyone is a victim and everyone has the RIGHT to whatever it is he/she thinks is appropriate. Relativism is in full swing and all that WAS normal no longer is even palatable.
Victims...whiners...womb to the tomb leftists have permeated the MEDIA and the only thing worth reporting is ANYTHING that is NEGATIVE!!!
Her's what I have to say.........We are WINNING the WOT, we have prevented another attack on our nation for 4 years now. Our military has FREED 50 million people from BONDAGE, our deficit is DOWN, the ECONOMY is booming, unemployment is way down, the housing market is just fine, and we still pay less for a gallon of gas than any non arab country on earth and, based on inflation less than we did 30 years ago.
D&G's GO HOME and cry!!!
Doom and Gloom.
They forget to mention the primary driver in the housing boom, historically low interest rates. I don't believe there will be a bust, rather a slowing of the rate as interest rates continue to be raised buy the Fed.
That's the real tip of the iceberg. Counties and states are spending these increased taxes like they were carved in stone. When, not if, the downturn occurs, they will have to raise other taxes to make up for the loss. Increased taxes mean people can't spend as much as before and tighten their belts/quit buying. Down we go. How far and how long is the real question.
Between the burst bubble and the high gas prices, I see bad things 'a comin'.
Japan's problems went far deeper than any bubble.
Those factors still exist to a large extent, and aren't changing very much.
"I see bad things 'a comin'."
Could be good - " all things work for the best in the best of all possible worlds".
Yes, but the dollar dropped about 30% over that period in time, so your $10,000 Dow Index is only worth about $7,000 in 2000 dollars, and the Dow would have to be up around 14,000 to match its 2001 value.
Raising taxes doesn't work.
They will restrict programs rather than raise taxes.
Hell, here in Florida they can't raise taxes, and when those blue states try, we just have to buld more house for the refugees. - And there are a LOT.
Since then, the market has made me wealthy. Spell compunded earnings :^)
Oops! Compounded earnings. ;^)
Japan has two and half times more the trade surplus of China. The Japanese economic ministry has done a wonderful PR job in creating the image that the Japanese economy is in the tank because of China. It isn't! They are doing well because of good strategic planning. Japanese CEOs think longer term than American CEOs
The main reason house prices have risen is the low cost of mortgages.
And since no one knows for sure why mortgage rates are now so low,
No one can say mortgage rates will not one day, even one day soon, skyrocket.
And when those rates go up, down will go home prices--
And down every place where people take mortgages to buy houses.
There is another graph on my FR page that is worth looking at in case you're interested.
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