Re: The Economist on the Housing Bubble

[Jim Devine <jdevine03@xxxxxxxxx>]

On 6/17/05, michael perelman wrote:
> The article calls it the biggest bubble in history.  Will Bush be able to blame a fall in housing prices on gay marriage?  Stay tuned.<

perhaps the Bushmaster hopes that tax cuts for his cronies and rising
expenditure in our splendid little war will, via Keynesian-type fiscal
stimulus, allow the economy to prosper. Just as the rise in personal
indebtedness linked to the housing bubble "picked up the baton" when
the stock market and corporate debt accumulation faltered in
2000-2001, government debt accumulation could pick up the baton
if/when the housing bubble pops. The first transition moderated the
recession of 2000-2001, so maybe...  Or maybe the military/plutocrat
Keynesianism could _pump up_ the bubble -- or at least delay its
deflation until 2008. Then some poor Democrat (H. Clinton? J.
Edwards?) would be left holding the bag.
JD