Thursday, June 23, 2005

Might as well go for the whole nine yards

It’s time like these that I wish I had gone into a more depression-proof line of work, like numbers running.

The Economist and Financial Times both weigh in the approaching bubble burst of the housing market. Alleged bubble! – lapdog Republicans cry. More lies by traitorous Democrats! – the White House cries.

But nonetheless, there is a housing market bubble. And it’s not restricted to the United States. You countries out there know who you are, no need for me to mention any names.

TomPaine.common sense does a good job summarizing the Economist’s subscription-only article.

But when heavyweights like the Economist and Financial Times start weighing in, reporting there is a housing bubble, and it will burst, and no we don’t know when, it’s time to bring up the Odd Lot Theory. In a nutshell, when the small investors start jumping on the bandwagon, the smart money jumps off and heads for high ground. To fit it to this situation, after months of denials by Administration officials, major market papers are presenting the contrary (and true) position means that the coming Second Great Depression can’t be denied.

Alright then. We’ve got a another Depression on the way. Greenspan can’t figure out how to defuse it. None of the central banks do. So what do we do instead? Look for a suitable companion. Why not a Second Dust Bowl?

There’s a lovely drought line extending from Wisconsin south to Texas’ southern border.

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