If there is no struggle, there is no progress.

- Frederick Douglas

The Bubble Still Bursting

Though the discussion of our economic problems is considered pessimistic by some, the truth is always worth discussion:

"...the really bad news is that, even after a year of misery and falling prices, homes in many of these regions still aren't cheap. They remain wildly overvalued compared to average personal incomes.

There is a strong long-term correlation between the two figures. And in many regions, house prices would still have to fall a very long way to get back into line.

How far?

Try around a third in Florida and Arizona -- and closer to 40% in California.
" [Read]

This is why some of us are still avoiding investments in real estate.

(If you really want to get depressed, there is an article that suggests a depression will be avoided when the fed starts to buy equities--yes, investing in the stock market. Talk about a bad idea... [Read])

posted at 14:21:28 on 02/13/08 by clearpolitics - Category: Economics - [Permalink]

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