The housing bubble (that Alan Greenspan says we don’t have) may be starting to unravel. According to a Las Vegas paper, a major home builder has begun to cut prices on new developments. The largest secondary mortgage buyer, the quasi-governmental agency Fannie Mae has been rocked by accounting scandals. The folks at The GSE Report do a fantastic job of digesting dozens GSE articles from major news sources. This week’s issue has 38 pages of of the most relevant commentary. See also:
Paul Kasriel, an Austrian economist at Northern Trust, examines the relationship between excessive US debt, over-spending, lack of savings, and the position of the dollar including some rather impressive some graphs and charts in Investment Implications of the Inevitable Rebalancing of the US Economy Or Making Lemonade Out of Lemons. Further implications of this rebalancing are explored in Eventual lunch bill may spell end to dollar’s dominance.
It all starts with the Fed and its policy of endless credit expansion. The Mogambo rightly takes the Fed governors to task (and cites Mises) in his latest comentary .
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“a major home builder has begun to cut prices on new developments.”
Falling prices during an inflationary time in the face of rising other costs. None of the average joes/janes that I know believe it. A temporary thing? Or is this the begining of that 64% price slide that Sir John Templeton said to buy at the end of? Or more like a slow fall like 1%-2% as in Australia. A temporary thing? It has to be temporary or the definition of inflation here aint what it seems. Inflation – inflamation.
The pool of available buyers v.s. supply.
A graph showing the rise and falling values of Argintienian real estate here x.
Slowly dragging out… is that about the right direction this whole lot of links takes?
I’ll hold my breath til Dec too.
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