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Anybody watch the Lehrer report last night? They did a segment starting out with a lot of gloom and doom about "sub-prime" (=ARM), the housing "crisis", and the impending "recession."
They had four reporters from different parts of the country tell how the housing market and the economy were doing there.
Here was the response:
Philadelphia: housing good, economy good.
Kansas: housing good, economy good.
Michigan: housing bad, economy bad
LA: housing bad, economy good.
Conclusion: Housing is a mixed bag around the country. And it's being negatively affected by the media--people watching TV news are holding off buying. It is bad in Florida and California, where resort properties have been way overvalued by low mortgage rates a few years back (remember those 1% CDs and 2% ARMS? That's the "sub-prime" problem).
The word "recession" has crept into the TV news vocabulary. One reporter remarked that if you wish for a recession, you will get one. In other words, everybody thinks there's a recession, and they stop buying houses and cars. Result: a recession. The media leading the news.
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