A place for residents of Marin County, CA and others to express their views regarding the real estate bubble and in particular the Marin real estate market
Saturday, December 10, 2005
GDP and the "Healthy" Economy
Some people (especially realtors) like to argue that the worst case scenario now for the housing market is a so-called "soft landing" or stagnant pricing power. The support for their argument is usually along the lines that the economy is healthy. Personally, I don't know what planet they are talking about because here in my corner of Earth I don't see many signs that the economy is particularly healthy; I see a lot of people who either work for significantly less money than they did a few short years ago or who in some way or another are dependent on a continually expanding housing bubble. Maybe it depends on what one means by "healthy".
Well, over at CalculatedRisk there is a nice graph and article that illustrates what "healthy" means; the graph is reproduced here, below. In the graph, "MEW" stands for "Mortgage Equity Withdrawl".
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