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View Diary: The Black Swan Myth (154 comments)

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  •  What about housing deflation? (1+ / 0-)
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    Webster Hubble Telescope

    There's still a LOT of unsold housing inventory. The banks are keeping lots of foreclosed homes OFF THE MARKET so they can keep them on their books at inflated values; if they sold the homes, they'd have to take the losses. As these leak back into the market over the next several(?) years, they will continue to push housing prices down.

    Which will continue to depress construction and associated jobs.

    I understand we should NEVER get back to the level of housing construction we had during the bubble. It was an unsustainable fantasy. But it's going to take a while for all those unemployed carpenters, plumbers, roofers, electricians, mortgage loan officers, etc. to find work in other parts of the economy.

    "The true strength of our nation comes not from the might of our arms or the scale of our wealth, but from the enduring power of our ideals." - Barack Obama

    by HeyMikey on Thu Jul 16, 2009 at 02:46:57 PM PDT

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