Posted on 07/09/2002 4:18:25 PM PDT by rohry
"Moreover, consider that, if we knew that in a nation the size of, say, France, there had been a median home price increase of 25.5 percent in a year and that this, far from deterring purchasers, had led to a 22.7-percent increase in sales, would you say this represented a Bubble--a good old debt-fueled Bubble--and that this might pose risks to financial stability, especially when so many people involved were dependent for work, whether directly or indirectly, on the most battered industries?"
"In which case, what are we to make of the extraordinary 57-percent dollar year-on-year increase in spending on the California Real Estate Rush?"
"Houses are nonproductive assets, financed with a great deal of leverage. What is more, though they release their services in small increments to the owners, they deliver a large dollop of uncompensated purchasing power up front to their builders or to those cashing out of the market, as well as to the Realtors, who netted around $1,200 for each loan originated in the record $2 trillion total last year."
For the full text of the article written by Sean Corrigan go here:
Richard W.
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