Tag: greed

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The Corporation

End of last week, I watched a startling documentary, which resonated well with some suspicions I already had. Staunch capitalists probably wouldn’t be moved by “The Corporation“, although hard-core liberals or even communists might delight in the documentary.

My response is neither political nor economic, but rooted in my sense of right, which in part defines good as putting the wellbeing of others above oneself. People or organizations that prosper by harming others do wrong. Many societies recognize cannibalism as wrong, yet those same peoples often do not recognize as wrong another kind of cannibalism: The consumption (or sacrifice) of one person’s livelihood or well being to support another person, group or organization. 

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Housing Bubble Myths Pop

For more than a year I’ve warned that the housing market would retreat with wicked vengeance, with reverberations moving through the US economy as it did earlier in other countries. Today’s Fortune story “Getting real about the real estate bubble” rips apart some of the myths sustaining the bubble.

Shawn Tully whacks the hell out of four bubble myths: “As long as job growth is strong, prices can’t go down”; “the builders learned their lesson in the last downturn. They won’t swamp the market with new houses when the market turns”; “low interest rates will keep values rising, or at the very least, put a floor under prices”; “restriction on development in the suburbs ensure low supply, and guarantee rising prices”. 

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When the Boom Busts

I have repeatedly blogged about the impending housing market crisis. While not as apocalyptic as my stated position, SmartMoney story “Home Crunch” warns of problems on the coasts, where inflated home prices and risky mortgages will pinch many home owners.

In my neighborhood, signs of a sales slowdown are everywhere. Two houses around the corner have been on the market for months. A year ago, they would have sold within a week. Some houses are selling, but the turnover clearly is slowing down.