this time is caused by easy credit which is the

results of greenspan aggressive 13 times interest rates cut. Jobs are fine. But housing price has been too high as a result of easy lending and later on aggressive and speculating buying. Although the housing slump has been for a while but housing price which ultimately matters refused to drop down to acceptable levels for new buyers. Fed and banks have been helping to retain this high level housing price coz the consequence is too big to let it go.

It is very simple. Nothing is wrong. Jobs and american nonfinancial/mortgae companies are doing fine. It is the matter of price which is beyond the acceptance of new buyers. Some new buyers who can afford a house (i am one of them) are watching. they are tired. they lost interst in this crazily manipulated market. If your house in palo alto increase 1 million, your son or grandson has to pay 1 million more for same stuff. Housing, by nature, is just a shelter for social stability and nowdays it becomes the fastes way to get rich.

As long as housing price refuses to drop down and new buyers purchasing power can not keep up, housing slump will continue. You do not want to sell cheap. Why the hell I have to pay double price with double tax for same stuff? The sellers either reduce price or wait for buyers to catch up. it is very simple. However, it is always true that buyers have more time than sellers.

所有跟帖： 

• agree with this analysis. -crazydog- ♀ (386 bytes) () 10/31/2007 postreply 16:45:54

• You brought up a nice point: Inflation must catch up housing pri -miat42- ♂ (738 bytes) () 10/31/2007 postreply 16:58:45

• Your logic is not convincing enough :-) -miat42- ♂ (1044 bytes) () 10/31/2007 postreply 16:51:50

• 回复：Your logic is not convincing enough :-) -pediatrician2- ♂ (1471 bytes) () 10/31/2007 postreply 16:59:15

• 回复：回复：Your logic is not convincing enough :-) -miat42- ♂ (1443 bytes) () 10/31/2007 postreply 17:11:39

• well, all of your confusing words can be summrized -pediatrician2- ♂ (274 bytes) () 10/31/2007 postreply 17:19:26

• Thanks, we are basically on the same page :-) -miat42- ♂ (0 bytes) () 10/31/2007 postreply 17:22:01

• 太精彩了,二位, DDD! -左右逢源- ♂ (0 bytes) () 10/31/2007 postreply 20:35:17