Wednesday, June 01, 2011
Stephen B. Meister of the New York Post notes at least one way that the depressed economy is perpetuating itself.
[C]ause and effect have reversed themselves: While the subprime crisis and bursting of the housing bubble triggered the financial crisis that led to a broader recession, now it's the broader recession -- and its persistent joblessness -- that's dragging down housing.Meister goes on to note that the Feds now back 95 percent of all new mortgage loans and that, "No housing policy will stop housing's double dip. To do that, we need the millions of jobs only a reversal of President Obama's ruinous overall economic policies will bring."
The economy still isn't producing enough jobs to keep up with the growing workforce. So people are reluctant to become first-time homebuyers because they've lost (or fear losing) their jobs, and because they fear further price drops. That means "trade-up" buyers can't buy -- even if their jobs are secure -- because there's no one to buy their current (starter) homes at a price that will pay off their mortgages.
--- In Other News ---
Carolyn Hax, on the futility of appeasing people who do not respect personal boundaries: "Eh, they'd just reject [a lie-detector test] as inadmissible." As with any such problem, there is often plenty of blame to go around on both sides. Hax makes that point, too, and Michael Hurd ably elaborates: "If you begin to recognize your own part in the problem, the problem will start to go away."
Heh! I'm probably old enough to be this guy's dad, but this graph illustrating "How Not to Sell Something to My Generation" applies equally well to me.
I'm no minimalist, but I found the arrangement of the this tiny apartment to be very clever. I agree with the commenters who said something like this would be ideal for someone who regularly spends part of his time working away from home.
It's a lot of effort for a "Big Mac," but I have got to try this some time. "Your move, clown. Your move." Indeed!