Thursday, April 14, 2005

Guest Commentary at Prudent Bear has another good article from a guest contributor. If you are not familiar with, and are curious about how the housing bubble is really being fueled by a broader credit bubble, then try to read some of the commentary their at least once a day.

"US housing prices and consumer spending- marching in lock step- have delinked from household earnings, long term trends and sustainability. In 2003, half of the nation’s $7 trillion in mortgage debt was either originated or refinanced. Credit availability, 40-year low interest rates and rising debt tolerance seized the reins from prudence and off we went..."


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