I question the timing personally.

I mean...didn't we just have this big ole news break the other day that the DOW had just broke the coveted 13,000 mark and continued to rise?? Oh, my bad....I should have figured that the MSM couldn't let all that good news get everyones hopes up. No no no....they had to bring us down.

However, they did it with a section of the economy that basically shot it's own self in the foot. On both the consumer and the provider sides respectively. How so you ask?? Let me tell you.

The housing market is being flooded with a large number of empty homes because of two MAJOR reasons.
1) Developers are building homes and pricing them at levels high above what the average joe is willing to pay for. They tried to pander to a demographic to get more money for less, but it kinda backfired on them.

You can't sell a 1800 sq.ft. home for $225,000 And expect someone to come rushing along and buy it. The materials aren't worth that much and plus, it isn't feesible considering you were selling 2600sq.ft homes just 10 years earlier for less than $100,000. People will only be squandered out of the hard earned cash for so long before they stop buying in to a market thats trying to swindle them.

2) The people that DID go buy homes were too stupid to figure out that it would cost them alot of money. They went out and got loans that they should have known they would never be able to pay back. Not to mention that alot of these people that went out and spent money like it was going out of style were also starting to have kids at the same frequency. Plus, the rise in the number of "shacking up" couples that didnt get married and then bought a home didnt plan for the eventual break up and then....the eventual selling of said home. Divorce rates, bankruptcies, flux in the pricing, material costs, and overall bad decisions crippled the home market.

So, this is what it comes down too. You have stupid people buying houses from stupid developers. I wasn't even an economics major (although economics was a high note for me) and I saw the eventual collapse of the housing market at the rate it was going.

However, just because the housing market is falling doesnt mean the economy is bad. The article claims that we had the weakest increase of only 1.3% but they fail to mention that the economy hasn't taken a step back, but only took a baby step forwards in certain areas.

We didn't lose anything. We just didnt gain as much as we liked.

Posted by: NthPower at 04:09 PM | No Comments | Add Comment
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