You may have missed the biggest news of the 21st century straight from the pages of The Little Town Lyar:
Judge John J. Roberts, who was confirmed by a Senate vote of 78-22, said he felt the record should be set straight on the housing market today, and that the Supreme Court was set to hear the case, The People vs. The Real Estate Bubble. Roberts, a conservative, believes the ‘bubble’ to be a myth, and that high housing prices are in fact the creation of newspaper editors’ overactive imagination and need to fill space with something.
David Lereah, chief economist of the National Association of Realtors, had this to say, “We have seen the air escaping the bubble very slowly in various markets. The housing market is clearly not Bubble Yum or Mr. Bubble.”
Mr. Bubble, who was seen floating above Capitol Hill, said, “If I’m a myth, you would not be asking me for a quote, you dolt.”
Mr. Balloon was also seen floating higher, on news that the real estate bubble would be ruled a myth by the highest court in the land.
The reality is the housing market has declined in most areas throughout the nation already (see Las Vegas’ pre-construction projects where they cut prices 20 percent, for example), it is still mildly frothy in others, showing that if the Supreme Court ruled the real estate bubble to be a myth, they would be right in their judgement. Of course, this does bring us to the fact that we have given the Federal Reserve the right to create real estate recessions by artificially increasing interest rates to higher-than-market levels, and such rate increases hardly deflate inflation.
The reality of the inflation we’re seeing is not due to a strong housing market. It is due to high oil and gasoline prices, combined with high deficits (national and trade), that create ever-increasing prices. Greenspan has no control over these, though, and Congress controls government spending. Higher interest rates, though, do make it increasingly hard to reduce national debt and deficits.
The real estate market, however, is a balloon, constantly taking in air and releasing it. It’s the natural state of the market, and any free market is going to act this way. Media who publish the false premise of a real estate bubble only promote consumer panic, and such media should be held accountable.
I do not expect Chief Justice Roberts to do this, but someone should. While we do have the right to free speech, the right to pour press that puts the public in a panic over housing is neither healthy for the public, for the housing market or for the economy.
Neither does it encourage logical behavior. What would happen to bubble proponents if they pushed the same myth about pharmaceutical products? The cost of insulin, for example, continues to go up. Does this mean there is an insulin bubble, and if so, when will it pop, and should I stop buying it until after the insulin bubble bursts? No, of course not, because I would be dead. So why do some publications promote homelessness by discouraging homebuying by creating bubble panic? I’m not sure. Higher prices are caused by supply and demand. Lower supply and higher demand creates higher prices. This is the nature of our capitalistic economy. I do believe that is something with which Chief Justice Roberts would agree.