I was searching Google News Stories this evening about 'real estate' and came across a very interesting article. It makes sense economically. The name of the article is "Another real estate crisis is about to hit!" This time it will the collateral damage of layoffs. It was written by By Paul Craig Roberts who has incredible credentials (Former Assistant Secretary of the Treasury, Associate Editor of the Wall Street Journal, and He was awarded the Legion of Honor by French President Francois Mitterrand.)
The basis of the story is really how we live in America, too much credit, and not enough savings. As savings and frugality disappeared, the excesses of our society can be easily seen in consumer spending which became over 72% of GDP. Those excesses in easy cedit fueled our residential real estate growth, and also commercial real estate growth. The second part of our real estate crisis he likens to a second Katrina hitting New Orleans before the effects of the first Katrina had abated. The problem is the same Government that caused this is about to throw more fuel on the fire with even more credit debt. I would love to hear your thoughts on the the article. It is well written, and easy to read. There are many sobering points.