"It seems pretty clear now that the U.S. housing market is cooling," Bernanke said in a question-and-answer session following a speech he delivered on banking in Chicago. He noted that home sales are slowing as is housing construction.The term 'cooling' which Mr. Bernanke uses to describe the housing market is a euphemism. It is an inappropriate term as it implies pleasant connotations. It is not pleasant for the housing industrial complex or recent home purchasers. The correct term should be 'declining' or 'falling.'
"Our assessment at this point ... is that this looks to be a very orderly and moderate kind of cooling," Bernanke said
"In combination with rising interest rates affordability is becoming much more difficult and therefore as you would expect you are seeing some cooling in those markets,
Furthermore, does Bernanke really believe that "this looks to be a very orderly and moderate kind of cooling"?
It is NOT an 'orderly and moderate kind of cooling':
- The surging number of homeowners who are being foreclosed on
- Flippers who are trying to sell there recent purchases
- For thousands of mortgage brokers who have been fired in recent months
- The real estate agents whose transactions are declining
- For the many construction workers who are about to get fired
- This is just the start of the decline. The boom lasted 5 years. The decline has only been about 9 months.