The silver lining in more "bad news" about housing

There was more "bad news" about housing this morning: Housing starts are at 16-year lows, the number of building permits fell 3% in January and mortgage applications dropped 23% last week.

This is a good thing.

There's a silver lining. The housing bubble -- a mistake to begin with -- will deflate, forcing people to live closer to their means and fixing some of the imbalances in the economy. Maybe we begin to reconsider the idea that you have to buy a home in order to feel successful. In fact, now you may never own one. And maybe you're better off renting anyway.

Obviously the real estate industry hopes for light at the end of the housing-gloom tunnel. And, sure, rising home values makes owners feel richer, keeping the consumer economy humming. Just yesterday optimists in Phoenix predicted an upturn.

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• In real market economy, periodic slowdown is necessaey and healt -whatever1234- ♂ (139 bytes) () 02/20/2008 postreply 18:34:02