David Stockman manages to look at the right things in his analysis, and gives a tour de force on the current housing price bubble.
Well, no. First, if prices of anything is not generally falling always, then there is something wrong. what is wrong is usually government policy which benefits some and harms other by causes prices to rise. Rising prices are never a good thing in an economy, except when there is some disaster and players begin to gouge to signal where and when and to what degree scarcity is occurring, so assets can be reallocated where they are most badly needed.
When we have a housing price bust, the vast majority of Americans will be benefitted.
And note, this entire problem is again created by usury, and the added tactic of lending credit not money.
Feel free to forward this by email to three of your friends.
So the miraculous recovery of housing prices in these markets is not all that. Its another housing bubble—this one based on an institutional form of sub-prime rather than dodgy retail mortgages. Specifically, the meth labs of Wall Street have already concocted a new variant of toxic waste in the form of securitized rents. Stated differently, they are now slicing and dicing rental income streams based on model assumptions about average occupancy, tenant turn-over, rental rate increases, repair costs and much else. All of it is untested and probably unknowable since this industry—detached home rentals— was only born yesterday.He is not calling a bust yet, but he unfortunately asserts that mostly housing price increases are a good thing.
Well, no. First, if prices of anything is not generally falling always, then there is something wrong. what is wrong is usually government policy which benefits some and harms other by causes prices to rise. Rising prices are never a good thing in an economy, except when there is some disaster and players begin to gouge to signal where and when and to what degree scarcity is occurring, so assets can be reallocated where they are most badly needed.
When we have a housing price bust, the vast majority of Americans will be benefitted.
And note, this entire problem is again created by usury, and the added tactic of lending credit not money.
Feel free to forward this by email to three of your friends.
1 comments:
Is it possible to buy a house using Islamic finance in the U.S. (using the Islamic equivalent of a "mortgage"?)?
Citibank has offered Islamic banking:
See:
http://www.citibank.com.my/english/islamic-banking/index.htm
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