The Bank of England must act decisively and swiftly to curb the current house price madness.
With a key mathematical insight, a pair of theorists has solved a 5-decades-old puzzle as easily as you might burst a soap bubble with a pin. The new result lets researchers predict whether a bubble in foam will grow or shrink.
Treasury Secretary Henry Paulson delivered an upbeat assessment of the slumping real estate market on Friday saying, "All the signs I look at" show "the housing market is at or near the bottom." Baloney.
Unusual weather patterns and problems in the subprime lending marketplace are creating challenges in assessing housing market conditions, but a recovery is likely this year, according to the latest forecast by the National Association of Realtors(R).
This week's data on the sagging real estate market leaves no doubt that the housing bubble is quickly crashing to earth and that hard times are on the way.
New home sales dropped by a staggering 17.3 percent over the last year. But an uptick during the final two months of 2006 may indicate that the housing market has already taken its worst licks.
"Most everyone involved in the real estate bubble thus far has made at least a few dollars. But that is about to change. The bubble will burst, and when it does, the people who thought they'd be living the easy life of a landlord will soon find that what they really signed up for was the hard servitude of debt serfdom."
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The downturn in the US housing market will force businesses to slash 73,000 jobs a month in the new year and could be more damaging to the world economy than the dotcom crash, economists have warned.
Finally, some closure is this case...former investment banker Frank Quattrone reached a deal that eliminates the need for third trial and allows his criminal case to be dismissed. And, just in time for the next bubble and all of this Web 2.0 hype.
"I fear that the rush to become a hipster online play could lead media companies like Walt Disney, Viacom and my parent company Time Warner to repeat the mistakes many of them made at the height of the last dot.com mania and overpay in their attempts to uh, out-Fox News Corp. and MySpace."
Bubble sitters also include those people who have never owned a home and are waiting to take the plunge, along with folks who are relocating and holding on to their cash until the market in their new hometown softens. Many experts have labeled the majority of U.S. housing markets overvalued, but is it wise to count on prices falling?
