FATAL FLAW – This article makes no mention of debt.
It assumes that everything people spend their money on is an indication of their wealth. You can’t trade your car, or flat screen TV, or your college degree in for a home. He’s confusing earning potential with real income.
This article is not in touch with reality. It confuses Debt with Wealth. People aren’t paid in gold nor does the vast majority trade it. Gold’s more relevant to the value of the dollar than house prices. As gold goes up, incomes do not inherently follow.
“The nation’s wealth and its permanent income are growing”
And outgrowing both of those is DEBT.
If people weren’t losing their homes at a record pace than I might believe prices could be sustained. Someone show this guy year over year prices.
