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The "housing bubble" is quite similar to the "tech bubble" in that both were more illusionary than based on reality. Odd that while everyone seems to focus on the so-called "questionable lending" involved (actually fraudulent would be more accurate) as being a harbringer of doom, no one seems to notice some more concrete things to be worried about.
The Bush tax cuts are set to expire, thereby giving the Dems a way to raise taxes without having to actually vote for them. And the tax cuts have really been the major engine pulling the market ever upward. Add in the tax increase they recently voted on the oil industry (who do you think will actually pay that $16 billion? Not the oil companies) and you have a pair of VERY worriesome things on the horizon.
The market will correct itself, but it may get worse before it gets better. Especially if business loses it's incentive to invest and grow, rather than just hold on to what it has. Like it or not, believe or not, a rising tide does raise all boats, and trying to "soak the rich" and adding more government entitlements hurts those without, long before it hurts those with.
Currently back in New Bern, NC
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John
Ontario 32 - Aria
Free, is the heart, that lives not, in fear.
Full, is the spirit, that thinks not, of falling.
True, is the soul, that hesitates not, to give.
Alive, is the one, that believes, in love. JCP
Music on the Wind -
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