RE: Re: One more question

["Devine, James" <jdevine@xxxxxxx>]

>Sabri, the housing bubble is real.  Some of the bubble has deflated near
you, say in Palo Alto.  Greenspan has been pushing the idea, and a
number of studies support him, that housing wealth has been much more
important than stocks in propping up consumption.<

it's possible that the housing "bubble" is no longer based on low interest
rates and debt accumulation (something that can't be sustained over the
years). It could be based instead on the fiscal stimulus of late last year
-- which might continue as a sustained military-Keynesian economy (the
permanent war economy). In that case, it's no longer a bubble -- JD