May 03, 2006

:^)

Posted by blogger at 5/03/2006

11 comments:

Anonymous said...

it's good to know the exact second of the exact minute of the exact day of the exact year that the bubble popped

it's when this issue hit the newsstand

May 03, 2006 2:42 AM
Anonymous said...

I'd like to see the looks on the faces of the speculators now as they look at their condos in Florida and Phoenix.

I'll bet that loving look isn't in their eyes anymore.

May 03, 2006 4:15 AM
Anonymous said...

When an article about the real estate is on the front page of Times magazines, it means "TIME TO SELL" and get out or just don't buy.

May 03, 2006 5:08 AM
Anonymous said...

perhaps it's futile to keep pointing this out, but that Time piece was hardly pro-housing. It was about the huge real estate runup, flipping, realtors, etc, but it never made the case that housing was going to keep going up. The picture of the guy hugging the house was clearly ironic, especially when paired with the headlines "Is it time to buy -- or rent? The Case for Renting"

But I suppose the idea that the Time cover was a bullish call on the housing market, at the very market peak, has now passed into our national mythology, and will therefore become the collective memory we will all share, or most of us, whether it was right or wrong. Keith certainly seems determined to do his bit to ensure that it does.

May 03, 2006 5:23 AM
Anonymous said...

NAR still in denial or lying

http://money.cnn.com/2006/05/02/news/economy/housing_jobs/index.htm

NEW YORK (CNNMoney.com) - Those looking to glimpse the future of the housing market may want to start watching help-wanted ads rather than the real estate section.

Experts who say the housing market is cooling, but won't implode, argue that solid job growth should be enough to prevent a collapse in home prices. But others who see a housing "bubble" ready to pop say a developing slowdown in home building itself could hurt job growth enough to put a big dent in housing.

May 03, 2006 5:33 AM
Anonymous said...

CNNMoney article on housing bubble burst vs soft landing. Of course NAR thinks RE prices will continue to rise this year and next. Why the press even bothers to interview them is beyond me.

Click Here

May 03, 2006 5:53 AM
Anonymous said...

It doesn't matter what the details of the Time magazine article were. It does matter what the context was, and here it is unquestionably 110% bubble bubble n bubble.

"Why we're going gaga over real estate" ???
"Home $weet home" ?

If it were the bottom would the magazine look like that, with just one cautionary headline?

Obviously not: it would have articles about foreclosures and people called "homedebtors", the blowups at Fannie Mae

Example headlines:

"Has the Fed lost its credibility for good?"

"Bankruptcy reform bill of 2010: does it finally spell R-E-L-I-E-F for desperate Americans?"

"Condo fees from hell"

"When will it ever be time to buy?"

May 03, 2006 6:24 AM
Anonymous said...

Keith,

Check this out!

You should put this cover next to the Time cover ...

THE NEW ROAD TO SERFDOM
An Illustrated Guide to the Coming Real Estate Collapse

Never before have so many Americans gone so deeply into debt so willingly. The bait is easy money. The trap is a modern equivalent to peonage.

Hudson breaks down this housing crisis into 20 reasons why the problem is bigger than many think and highlights the fast appreciation of land.

http://www.harpers.org/MostRecentCover.html

http://www.schalkenbach.org/store.php?crn=73&rn=554&action=show_detail

Short the HB's,
prof_investor_40

May 03, 2006 6:56 AM
Anonymous said...

COMPARING NEW JERSEY AND CALIFORNIA... both states had higher taxes and Inflated home prices ?

May 03, 2006 7:02 AM
Anonymous said...

Sad fact - one of the contributing factors (some leading economists think it WAS the main factor) of both the Great Depression and the Japan 16-year slump were both housing bubbles. The US bubble peaked in 1926 followed by the stock market in 1929.

At one point in Japan the land underneath the Imperial palace was worth more than the aggregate land in the state of CA. As people bailed out of housing in 1989 it put the country in it's current 16 year slump. The Japanese economy was shattered so badly that even 0% interest rates on loans could not revive it.

Let's hope we can avoid the same fate.

Keith, the better aticle was the Economist with a picture of a gold brick. I have the issue on my coffee table and can scan the picture if you need it.

June 2008 Time headline - "The Toxicity of Housing - Why it's not a good deal and who's to blame for the bust"

May 03, 2006 1:20 PM
Anonymous said...

In 2005, nearly 1/3 of U.S. GDP was the result of borrowing by government, corporations, and in-duh-viduals. All this funny money sloshing around has the predictable result -- real-world inflation (as opposed to the bogus gov't numbers) is now running around 1% a month. In other words, it's out of control.

Get ready boys and girls because the fun is only starting. Eventually the pols will have to sign on to the scheme, and the Treasury printing presses (electronic of course) will be switched to high gear. The U.S. dollar is going to fall like a stone against the Euro, yuan and yen, and IMO something is going to break in that magic place called Derivatives Land where the big boys play their games.

When the house of cards finally comes down, they will all act surprised, and they will find a scapegoat -- Alan Greenspan?

May 03, 2006 3:31 PM

Post a Comment

Subscribe to: Post Comments (Atom)