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A bubble bursts?


TPS

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Housing Bubble

 

 

Let's see, I beleive the right says it was the Tech bubble that fueled the 1990s, not Clinton's policies; so would you say the same about the housing bubble? Or is the housing bubble, and "half the growth since 2001", a consequence of Bush's supply-side policies?

 

"The slump in the bonds is one of the first signs the housing boom is ending after the Federal Reserve's 12 interest- rate increases. Real estate has accounted for about half the economy's growth since 2001, according to Merrill Lynch & Co. "

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Growth in some other sector will eventually replace the housing bubble for things that drive the economy by being over-valued. Crediting or blaming a president for something that happens in the economy on his(or her!) watch is practically a non sequitur. They can fine-sand it using various tools like interest rates, but the economy is rough-hewn by the collective decisions of 290M Americans.

 

In "1984" it was a razor blade bubble. Who knows? Pet Rocks may now make a comeback.

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If this is a veiled attempt to draw me out, it worked.

 

As usual, you have your cause & effect mixed up.

 

You may recall that I gave Clinton credit for lowering the CG tax rate to help fuel the tech rally, just like Bush's tax cuts stoked the economy. What private individuals do with their surplus cash, is outside the President's control (although he's usually the beneficiary of good news)

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If this is a veiled attempt to draw me out, it worked.

 

As usual, you have your cause & effect mixed up. 

 

You may recall that I gave Clinton credit for lowering the CG tax rate to help fuel the tech rally, just like Bush's tax cuts stoked the economy.  What private individuals do with their surplus cash, is outside the President's control (although he's usually the beneficiary of good news)

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Of course it was... :D

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I haven't read all six novels posted about this, but how can construction be slowing when so much has to be rebuilt in the Gulf States?

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You're channeling Alan Greenspan. One of the reasons he said that he doesn't think that the housing bubble will completely melt down, is that it is highly regionalized, as opposed to a stock market meltdown which is very broad.

 

Still, heavy need for construction in Gulf, won't do much when there's absolutely no demand for new construction in NY or CA.

 

The 800K jobs aren't all in construction - 500K construction - 300K financial (no demand for mortgages, refis, etc)

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