I guess that’s the crux of the argument. If you believe housing prices, nationwide are a huge bubble then yes it’s a bubble.
Or maybe you believe that a free market (for the most part) economy will have it’s excesses and froth once in awhile that will be corrected.
Yes there are certain bubble areas (that are being corrected).
Overall most areas have not seen the excesses that everyone wants to talk about.
But others think differently and think Armageddon is coming for the economy
>> Or maybe you believe that a free market (for the most part) economy will have it’s excesses and froth once in awhile that will be corrected. Yes there are certain bubble areas (that are being corrected).
Call it what you will: excesses, froth, or a bubble. It does need to be corrected. And the correction is not to lower interest rates to sustain the froth (bubble, excess, what-have-you)!
>> But others think differently and think Armageddon is coming for the economy
Well, I am optimistic about our nation and our economy over the long haul. I think we’re headed for a recession; I think it’s likely deserved; I think we need to get it over with, wring the excess out of the housing market, (i hate to say this but) PUNISH the stupid and greedy so the DON’T TURN RIGHT AROUND AND DO IT AGAIN, and get on with working for a living like we ought to be doing as a nation.
Now... if we don’t come to grips with this problem (and it IS a problem) — if we delay it and rig up all sorts of explicit and implicit bailouts of government’s friends in the investment banking, building, real estate and related industries...
THEN we’ll have Armageddon.