Housing Bubble is Deflating.
Via the The Kirk Report's mention of notable declines in the housing market is this story from the Dallas Morning News reporting that housing prices in Manhattan are down 13% for the third quarter and 36% for homes with four bedrooms or more. Inflated San Francisco is down 10% and San Diego is down 4%. The story didn't comment on bloated markets in Orange County, Vegas and Florida, but anyone with sense knows if the needle hasn't hit those bubbles yet it will soon.
Jim Cramer of TheStreet.com in his CNBC tv show Mad Money has been saying that Fed Chairman Alan Greenspan "is on a jihad against your home and mine." Cramer doesn't mention that Greenspan, loose with the money supply, was largely responsible for the housing bubble to begin with, again playing cheerleader for the bubble as he did for the 90s tech bubble.
But just as Greenspan spoke of "irrational exuberance" before the tech bubble burst, he began speaking of "froth" in the housing market not long ago ("froth" meaning it was not a nationwide bubble but a sort of housing bubble bath where some regions of the tub - rural Kansas, parts of upstate NY, and suburban Michigan for example - were not inflated). The share prices of Home Builders have, of course been, affected. Folks such as Cramer, who no doubt know the history of the Dutch Tulip Bubble, should not be surprised. It's called a truism because it's true - TREES DON'T GROW TO THE SKY.
Jim Cramer of TheStreet.com in his CNBC tv show Mad Money has been saying that Fed Chairman Alan Greenspan "is on a jihad against your home and mine." Cramer doesn't mention that Greenspan, loose with the money supply, was largely responsible for the housing bubble to begin with, again playing cheerleader for the bubble as he did for the 90s tech bubble.
But just as Greenspan spoke of "irrational exuberance" before the tech bubble burst, he began speaking of "froth" in the housing market not long ago ("froth" meaning it was not a nationwide bubble but a sort of housing bubble bath where some regions of the tub - rural Kansas, parts of upstate NY, and suburban Michigan for example - were not inflated). The share prices of Home Builders have, of course been, affected. Folks such as Cramer, who no doubt know the history of the Dutch Tulip Bubble, should not be surprised. It's called a truism because it's true - TREES DON'T GROW TO THE SKY.
posted by BarbariansAtBay at
11:17 AM
