Friday, September 01, 2006

What are you going to do after the economic holocaust?

An AP wire story a week or so ago gave a startling fact: Home sales have dropped by 4.3% since a dip over twice that size occurred in February. The once-tropical housing market is not just cooling off, it's coming to a hypothermic end.

A Market Watch story last week goes even further to say that we're really screwed. Nouriel Roubini, an economist and president of Roubini Global Economics, not only says the housing market is in a slump, but it's in "free fall" and again makes the prediction that the US will be in recession in 2007. He states on his blog, "I have also argued before that the effects of housing on US economic growth and the role of housing in tipping the US economy into a recession in early 2007 are more significant than the role that the tech sector bust in 2000 played in tipping the economy into a recession in 2001." This is gripping stuff, and comparing the two major McMansion builders to the "proverbial canary in the mine" does not bode well for the US.

So, after the economic holocaust I will probably sew clothes and repair bicycles.
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