The below excert is from the "Economist" a conservative, check the facts, and generally excellent publication. While FF is not in much of a bubble, with housing prices appearing flat or declining for some time, the popping of the natiional and world bubble, or its slow, hissing deflation, could dramatically effect the economy, incomes and employment. Household spending drove the recovery from the recent recession, and drives current growth. And HH expenditures have been fueled by the wealth effect of homes rising 50-200% in many areas over the past 6-7 years. In a bubble burst, its possible that the value of household assets could plummet, the economy and incomes could tank, with unemployment soaring. Both dangers and opportunities will exist as markets thrash about seeking their new equillibriums. Cleansing of the housing market exceses as one of first major changes in "Sat-Yuga"? Not sure. In any event, as Bette Davis said, "fasten your seat belts, we are in for a bumpy ride".
************************** NEVER before have real house prices risen so fast, for so long, in so many countries. Property markets have been frothing from America, Britain and Australia to France, Spain and China. Rising property prices helped to prop up the world economy after the stockmarket bubble burst in 2000. What if the housing boom now turns to bust? According to estimates by The Economist, the total value of residential property in developed economies rose by more than $30 trillion over the past five years, to over $70 trillion, an increase equivalent to 100% of those countries' combined GDPs. Not only does this dwarf any previous house-price boom, it is larger than the global stockmarket bubble in the late 1990s (an increase over five years of 80% of GDP) or America's stockmarket bubble in the late 1920s (55% of GDP). In other words, it looks like the biggest bubble in history. http://www.economist.com/opinion/displaystory.cfm?story_id=4079027 **************************** For those seeking a deeper understanding of the underlying mechanics of the bubble, see this blog. The first part pertains to factors affecting the SF Bay Aea -- but most are relevant for all areas. Midway down is a wonderful compendium of bubble articles, updated daily. http://patrick.net/housing/crash.html#links To subscribe, send a message to: [EMAIL PROTECTED] Or go to: http://groups.yahoo.com/group/FairfieldLife/ and click 'Join This Group!' Yahoo! Groups Links <*> To visit your group on the web, go to: http://groups.yahoo.com/group/FairfieldLife/ <*> To unsubscribe from this group, send an email to: [EMAIL PROTECTED] <*> Your use of Yahoo! Groups is subject to: http://docs.yahoo.com/info/terms/