Stinky Bubbles...?
Previous blogs discussed why I believe there is no housing bubble in our fair community of Fredericksburg, Texas. I am also a small minority that believes there is no national housing bubble (with the possible exceptions of California and NYC). Well, lo and behold, another voice in the wilderness eloquently waxes upon what I feel in my gut http://moneycentral.msn.com/content/Experts/jim_jubak.asp?msn .
If you are at all interested in this topic (it does, by the way, directly affect us all) check out the previous posts We Aint Got No Stinking Bubble and We Still Aint Got No Stinking Bubble and the link above.
I know, I know, it can be a tedious topic but this issue touches all of us. Would you agree that housing prices are a key economic indicator? I assume most agree that they are. Even if you are a renter, housing prices affect you. Its simple supply and demand. The fewer people that can afford homes means higher demand for rentals. Higher demand equals higher prices.
All of this is a sure sign that the economy is humming along and that tax cuts work as an economic stimulus. Now if we can convince those boneheads in Washington to cut spending (not on anything that you benefit from, of course), wed really be on to something.
How many of you out there (show of hands please) can say they directly benefit from some government program or other? They sure spend a lot, yet I rarely come across anyone who is a beneficiary of that spending hmm.
