The "housing bubble hoax"
This idiot commented over at marketwatch and linked to their blog entry. It's really just too rich not to share!
Just goes to show, there are all manner of nutjobs in the world.
The HOAX: cause of the problem with US economy is the real estate bubble!
To those that are stating that the problem with real estate prices in US is the "run up in real estate prices...", aka real estate price bubble, what real estate price run up are you talking about!
Beside San Francisco, Washington DC & New York city, rest of USA has had price increases in real estate over last 7 years
which are pathetically low in comparison to rest of the developed world. And in the rest of developed world real estate prices are increasing nicely still, such as for example Australian Fed just increasing the interest rates over there to 7% to cool the real estate market and the same almost all over Europe.
So you have to ask yourself, WHY did the real estate prices increase SO LITTLE in USA over last many years compared to the rest of the (developed) World? Why real estate prices are increasing nicely still in the rest of the (developed) World but not USA?
Why has the US Dollar fallen an amazing 50% compared to the rest of the developed world currencies over last 7 years?
The article & discussion here does a great job of highlighting the fact that far from there having been a real estate bubble in US over last 7 years there has been the reverse of that. And I think that is one of the key reasons why US economy is doing so bad, that is while real estate prices in rest of the developed world are increasing nicely, they have not in USA, after all avg real estate prices in US are a pathetic $200 per sqft which as was noted here by others is now even less than avg real estate prices in eastern Europe. So you have to ask yourself WHY US real estate prices & US Dollar are doing so poorly compared
to Europe and rest of the developed world?
Just goes to show, there are all manner of nutjobs in the world.
Comments
Also, this quote from a comment is interesting.
It's unclear to me how #2 could ever explain a recession. And #3 is actually just #1 plus a little on the side.
RCC - one could argue that the US spent too much on the military even before the war in Iraq. Not sure how any of them could cause a recession, but just saying...
Right, my point being that #3 supercedes #1. It's like me saying I have a financial problem because.
#1 I spend too much $ eating out.
#2 I get too little exercise.
#3 I spend too much # on food.
Look at US wages priced in Canadian dollars. Why would RE go up with wages taking a 40%+ haircut in 4 years?