I’ve devoted a fair amount of space on the this site since it’s launch a few months ago to the real estate bubble, though I have neglected the topic lately. I’ve done so intentionally, mainly because the mainstream media has done a fine job covering it. In fact, there has been so much ink spilled on the subject that I’m surprised the price of ink has not reached bubble proportions.

It’s probably time to revisit the topic now, however, as it seems the evidence of the bubble’s demise is mounting:

-Supply is growing. The inventory of unsold homes is also climbing from San Diego to Boston.

-Demand is waning. It seems that lenders and real estate agents, frustrated by not being able to find enough buyers, are now getting desperate. So desperate, in fact, that they are enabling illegal immigrants to buy into the bubble.

-Nationwide the trend of foreclosures is clearly upwards and momentum is gaining. In july, foreclosures across the country were up 10% from July, 2004. With all the no-money-down, adjustable-rate, interest-only mortgages out there can this come as a surprise to anyone?

Again the major media outlets are on top of these new developments and I am fascinated by the change in sentiment as reflected in the media.

Not very long ago, the focus of real estate articles was on the self-made millionaires and the sky-high prices. Today the focus has changed to sellers getting nervous and people losing their homes.

Although the transition from pollyanna to chicken little has been relatively swift it is not unusual. In fact, it is eerily reminiscent of the stories dedicated to day-trading stock-stars giving way to those profiling corporate criminals that we saw during the recent stock market boom and bust. The media merely reflects public sentiment.

Today, the public is beginning to worry. There is no escaping that hissing sound.
LIV

I’ve devoted a fair amount of space on the this site since it’s launch a few months ago to the real estate bubble, though I have neglected the topic lately. I’ve done so intentionally, mainly because the mainstream media has done a fine job covering it. In fact, there has been so much ink spilled on the subject that I’m surprised the price of ink has not reached bubble proportions.

It’s probably time to revisit the topic now, however, as it seems the evidence of the bubble’s demise is mounting:

-Supply is growing. The inventory of unsold homes is also climbing from San Diego to Boston.

-Demand is waning. It seems that lenders and real estate agents, frustrated by not being able to find enough buyers, are now getting desperate. So desperate, in fact, that they are enabling illegal immigrants to buy into the bubble.

-Nationwide the trend of foreclosures is clearly upwards and momentum is gaining. In july, foreclosures across the country were up 10% from July, 2004. With all the no-money-down, adjustable-rate, interest-only mortgages out there can this come as a surprise to anyone?

Again the major media outlets are on top of these new developments and I am fascinated by the change in sentiment as reflected in the media.

Not very long ago, the focus of real estate articles was on the self-made millionaires and the sky-high prices. Today the focus has changed to sellers getting nervous and people losing their homes.

Although the transition from pollyanna to chicken little has been relatively swift it is not unusual. In fact, it is eerily reminiscent of the stories dedicated to day-trading stock-stars giving way to those profiling corporate criminals that we saw during the recent stock market boom and bust. The media merely reflects public sentiment.

Today, the public is beginning to worry. There is no escaping that hissing sound.
LIV

Crimson flames tied through my ears
Rollin’ high and mighty traps
Pounced with fire on flaming roads
Using ideas as my maps.
“We’ll meet on edges, soon,” said I
Proud ‘neath heated brow.
Ah, but I was so much older then,
I’m younger than that now.

Half-wracked prejudice leaped forth
“Rip down all hate,” I screamed.
Lies that life is black and white
Spoke from my skull. I dreamed
Romantic facts of musketeers
Foundationed deep, somehow.
Ah, but I was so much older then,
I’m younger than that now.

Girls’ faces formed the forward path
From phony jealousy
To memorizing politics
Of ancient history
Flung down by corpse evangelists
Unthought of, though, somehow.
Ah, but I was so much older then,
I’m younger than that now.

A self-ordained professor’s tongue
Too serious to fool
Spouted out that liberty
Is just equality in school.
“Equality,” I spoke the word
As if a wedding vow.
Ah, but I was so much older then,
I’m younger than that now.

In a soldier’s stance, I aimed my hand
At the mongrel dogs who teach
Fearing not that I’d become my enemy
In the instant that I preach
My pathway led by confusion boats
Mutiny from stern to bow.
Ah, but I was so much older then,
I’m younger than that now.

Yes, my guard stood hard when abstract threats
Too noble to neglect
Deceived me into thinking
I had something to protect.
Good and bad, I define these terms
Quite clear, no doubt, somehow.
Ah, but I was so much older then,
I’m younger than that now.

-Bob Dylan

LIV

Crimson flames tied through my ears
Rollin’ high and mighty traps
Pounced with fire on flaming roads
Using ideas as my maps.
“We’ll meet on edges, soon,” said I
Proud ‘neath heated brow.
Ah, but I was so much older then,
I’m younger than that now.

Half-wracked prejudice leaped forth
“Rip down all hate,” I screamed.
Lies that life is black and white
Spoke from my skull. I dreamed
Romantic facts of musketeers
Foundationed deep, somehow.
Ah, but I was so much older then,
I’m younger than that now.

Girls’ faces formed the forward path
From phony jealousy
To memorizing politics
Of ancient history
Flung down by corpse evangelists
Unthought of, though, somehow.
Ah, but I was so much older then,
I’m younger than that now.

A self-ordained professor’s tongue
Too serious to fool
Spouted out that liberty
Is just equality in school.
“Equality,” I spoke the word
As if a wedding vow.
Ah, but I was so much older then,
I’m younger than that now.

In a soldier’s stance, I aimed my hand
At the mongrel dogs who teach
Fearing not that I’d become my enemy
In the instant that I preach
My pathway led by confusion boats
Mutiny from stern to bow.
Ah, but I was so much older then,
I’m younger than that now.

Yes, my guard stood hard when abstract threats
Too noble to neglect
Deceived me into thinking
I had something to protect.
Good and bad, I define these terms
Quite clear, no doubt, somehow.
Ah, but I was so much older then,
I’m younger than that now.

-Bob Dylan

LIV