Quote:
Originally posted by turbo6bar
Found this on housing bubble blog:
USA Today article about mortgage rates
"We find that the red hot housing sector alone, which typically represents just 5% of the total economy, accounted for an astounding 50% of the overall growth in the U.S. economy by the first half of this year, and more than half of the private payroll jobs created since 2001 fall were in housing-related sectors," a Merrill Lynch report said this week.
I smell a recession if this bubble explodes, because there will be not a single strength in the economy.
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Although many would like to dispute it, we have not recovered from the recession that started in April of 2001. We are still down in terms of total employment and the Dow is only about 4% higher than it was then. -- v.s a historical average of closer to 4% a year.
It will not take a dramatic turn to precipitate a wave of foreclosures. Right now, there's no clear signal:
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The rising foreclosure rate in Texas, Florida and other prime real estate country may be the early warning signs of an implosion, or they may be just a blip. But whatever the big picture turns out to be, any foreclosure is an unmitigated tragedy for the family that loses its home.
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