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It’s Time to Get Real About Real Estate
Once again, real estate market watchers have pounced on a shred of seemingly positive news to proclaim that the long sought “bottom” is in sight. The routine is becoming extremely stale, but somehow the media never seems to tire of it. This time the “good” news was that the percentage declines in national home prices (according to Case Shiller) in July were not as large as they were in June.
Although the report contained many other negative data points, including increased inventories and a spike in foreclosure sales, it was the slowing declines that got the spotlight. Talk about grasping at straws.…
2Sep2008 | Money Morning | Comments Off | ContinuedSpreading the Slowdown
“Wall Street, central bankers, economists, politicians – and most investors too – are betting on a soft landing,” said a friend from New York. “A slowdown in world growth has taken the pressure off commodity prices. Slower growth will help keep inflation down, generally. And as long as inflation is no problem, the Fed doesn’t have to raise rates – which will keep the slowdown from hitting too hard.”
Monday’s International Herald Tribune echoed the good news:
“World economies catch US malaise…pain of slowdown spreads far and wide, threatening businesses and growth.”
The world was growing at about a 5% rate in 2007.…
27Aug2008 | Daily Reckoning | Comments Off | Continued
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