Friday, August 11, 2006

Let’s talk about real estate for a moment, shall we? (Don’t worry, the dots all connect in the end.)

We briefly interrupt our regular coverage of the Forever Campaign and the Forever War to talk about the collapsing housing market, though in the end it all seems to tie together.

Lew Scannon at Unbrainwashed had a good post on this subject the other day that caught my eye. He talks about the growing mismatch between net worth and earnings and wonders if we’re finally seeing the end of the suburban dream, or worse. His post is titled It Doesn’t Take a Clairvoyant and has some good links.
The housing bubble is dangerously close to popping. Housing sales have declined for the past nine months in a row. And those are new houses, older houses, refinanced at new housing prices are expected to take a hit if the bubble bursts. If the bubble does burst, it could plunge the economy into a recession.
We’re just seeing the beginning of this process. As the economy slows, there will be hell to pay. Probably the only way politicians in Washington can escape their constituents' wrath is to keep that Forever War stoked and at a fever pitch. (As noted, the dots all connect in the end.)

On to Iran! Nuclear bunker busters! Armageddon! Glory be!


Lew Scannon said...

Most people who refinanced at the higher rate won't be able to pay off the second mortgage when the bubble bursts and will be stuck with a piece of overpriced real estate.
Thanks for the link!

Dr Diablo said...

It's astonishing how often an apparently senseless picture comes into focus when a Bush Dot is added to draw together its confusing elements.

Take, for example, Wisconsin pro sports. I have marveled at how your Packers, long invincible at hallowed Lambeau, crumbled almost overnight. Psychotics in the front office spend a third round draft pick on a punter who can't make the active roster. Favre begins to play like a drunk, throwing into quintuple coverage while "leading" the team to a 4-12 record inflated by some luck. Or look at the Brewers, who make more personnel moves than your local Pizza Hut but fail even to attain mediocrity. What's going on out there? I have wondered.

Add a Bush Dot to the picture. Remember that George W formerly owned the Texas Rangers and maintains strong ties to Texas sports. Recall that Jeb Bush was widely touted as the next NFL Commissioner before mysteriously withdrawing his name from consideration. Suddenly it all makes sense. I think your astute readers can color in the details.

Thanks for introducing the Bush Dot, which I plan to make ample use of on my own site. And thanks in advance for the link.

Madison Guy said...

I would love to pass on the link to the Bush Dot, Dr. Diablo...

But I have already revealed more than I should -- that is, the fact that it exists. The Bush Dot link is only available to members of the Guild of Bush-hating Lefty Pundits. It's where we get all our story ideas, as you have probably guessed. The fact that you have actually teased out the Favre connection means I've already said far too much.