The popping of the housing bubble is much like the six phases of the typical project: Enthusiasm Disillusionment Panic Search for the guilty Punishment of the innocent Praise and honors for the non-participants Right now, we seem to be in an overlapping state centered around panic (this phase can last a long time) with lingering pockets of ...read more

In spite of Bernanke's claims that problems in housing are "well contained," most of the evidence appears to be contrary. State Tax Revenues Slump In "Housing Slump Pinches States in Pocketbook," The New York Times is reporting on tax shortfalls: In Florida, tax revenue is "projected to drop this year for the first ...read more

Things are starting to get a bit rough for "The Easy Society." Florida Today is reporting, "5,600 Brevard Residents Are on the Brink of Losing Their Homes": "A wave of home mortgage foreclosures is sweeping across Brevard County -- signaling a disastrous end to the local housing boom for those who ...read more

 I have seen a lot of articles over the past few months about rising delinquencies. This article from December 2006 is typical: "Families Feel the Pressure as Mortgage Delinquency Rates Rise": "America's middle class is already burdened by a trifecta of economic pressures: the labor market is slowing, household debt burdens are ...read more

Let's start with a quick look at the expansion of the monetary base in comparison with the expansion of broad money supply, as measured by M3: Monetary Base M3 The above chart is from a discussion on "Money Supply and Recessions." For this article, pay attention to the green line ...read more

Is household debt manageable? That is the question of the day. Bernanke sure seems to think so, at least according to this Chicago Tribune headline: "Bernanke: Household Debt 'Manageable'":   "Household finances are in good shape even as the greater availability of credit has led to higher levels of debt, Federal Reserve Chairman ...read more