EclectEcon

Economics and the mid-life crisis have much in common: Both dwell on foregone opportunities

C'est la vie; c'est la guerre; c'est la pomme de terre . . . . . . . . . . . . . email: jpalmer at uwo dot ca


. . . . . . . . . . .Richard Posner should be awarded the next Nobel Prize in Economics . . . . . . . . . . . .

Monday, August 29, 2005

Has the Housing Bubble Already Burst?

The Wall Street Examiner says it has:

The biggest financial disaster in history is unfolding in real time right before our eyes. Due to the lingering effects of mass hysteria, denial remains widespread. But the numbers don't lie.

The U.S. Commerce Department announced Wednesday that sales of homes increased 6.5 percent in the last month, while median prices fell 7.2 percent, down three months in a row and falling below year-ago levels.

Increased volume selling into a falling market looks to me like the beginning of a good old-fashioned collapse.

The current inventory of houses waiting for buyers is 460,000 -- an all-time record.
 
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