Here’s a good article over at MSN Money about how the housing market covered up fundamental weaknesses in our economy for the last five years or so. One of the scary stats in this is that, directly or indirectly, housing was responsible for 40% of job creation in that period…
Thanks for the article. I agree very much that housing has masked a weak economy. As a country, we’ve been living on borrowed time.
1. Euphoria and capital spending based on the Internet.
2. Capital spending and employment based on Y2K.
3. Dot com bubble.
4. Low interest rates.
5. Real estate bubble.
6. Massive government spending on security and war.
I’m afraid that we’re running out of options to prop up the economy.
So would you say NOW is a really good time to take out a HELOC buy a couple new Luxury cars, take a vacation, buy a 2nd and 3rd house, refinance those, all with interest only loans?
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