"And mostly the difference in views comes down to the impact of the housing
bust on the general economy. I think how people view the housing bust,
depends on how they viewed the housing boom. Those that felt there was
excessive speculation in the housing market (the definition of a bubble)
believe that the housing bust has just started. Those that felt the boom
was mostly based on fundamentals, with a little "froth", think the bust is
almost over. "
Whew! That guy, Roubini, lives in a special world! What the heck is a
"trailing peak?" And where does he get "falling employment?" This
just three days ago: "
NEW YORK (CNNMoney.com) -- The unemployment rate fell to the lowest
level in more than five years in October, the government reported
Friday, a sign of unexpected strength in the job market.
"The jobless rate sank to 4.4 percent from 4.6 percent in September,
the Labor Department said. It was the lowest since May 2001.
Economists had forecast the rate would hold steady. . . ."
http://money.cnn.com/2006/11/03/news/economy/jobs_october/index.htm
Predicting the US economic future has become similar to predicting
the future of the world. Depends on which chapter and verse you
choose to quote. Even more than in the various bibles, bloggers have
an unlimited menu from which to cherry pick.
Be careful to read differing viewpoints. These new blogspouts can
mess with your brain.
[Homestead] Housing bubble or froth,
Don Bowen, 11/06/2006