Real Estate Boom And Bust–A History… The DEF Attack On American Trucking…Real Estate–Every Up Always Has A Down
Update: 2022-06-24
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CORRUPTION
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ECOMONY + FINANCE
The Wall Street Journal is taunting me…
I (Dan Ferris) am not saying anyone at the financial publication has ever directed a syllable of their editorial at me. I’m just saying it sure feels like they’re taunting me with a recent headline…In recent Digests, I’ve pointed out more than once that housing is one of the two great sources of many Americans’ wealth. The other, of course, is their investment portfolios.When housing prices and the value of Americans’ portfolios go up in value, folks feel wealthy and spend more. That stimulates the economy (at least the way it’s measured nowadays). On the flip side, when both fall in value, folks spend less and the economy slows.It’s called the “wealth effect.”As I noted in last Friday’s Digest, soaring home prices have made people feel very wealthy over the past two years. But at the same time, they’ve also made housing much less affordable.That’s concerning, especially since the stock market is also dealing a major blow to Americans’ wealth right now. Falling home prices would be another big punch to the gut.
That brings me back to the Wall Street Journal‘s taunt…
I opened up my web browser and went to the newspaper’s website on Wednesday morning.On the left side, the top headline talked about the Federal Reserve’s plan to bump up the benchmark interest rate by 75 basis points (“bps”). (And later that day, the central bank did that.) The next two headlines mentioned “stock-valuation...
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