Certainly not. I strongly believe in the value of homeownership if and when the time is right. Homeownership, generally has many benefits such as forced savings (if you don't have a interest only or negative amortization loan), and increased stability in communities. While homeownership is certainly part of the 'American Dream;' In bubble markets it can easily become an American Nightmare. Buying today, in the bubble markets at near peak is financial folly. Be warned!
Given the last quarters' annualized 5.3% GDP growth, how can you continue to predict that a recession is coming soon?
Recent GDP growth has been largely built on an 'empire of debt.' The debt is being created in the form of US Treasury Bonds, mortgage back securities and credit card debt. In May, job growth was just 75,000 which is well below the 150,000 new jobs required per month just to keep up with a growing labor force population. "Outstanding household debt doubled to more then 10 trillion between 1992 and 2004, even adjusted for inflation (Empire of Debt, p 293)". Simply put, there are too many things that are unsustainable in the US economy. As the housing market continues to decline, it will push the US economy over the tipping point and solidly towards a recession. In 2007, the US economy is very likely to be in the midst of a recession.
Who is you least favorite housing 'expert'?
David 'Soft Landing' Lereah who is the chief economist for the National Association of Realtors. Mr.
Some have called you a prophet of doom. Are you?
No. I am not a prophet of doom. I am merely a prophet of upcoming economic gloom. A prophet of doom might say we are headed for a depression. My prediction is for a recession, not a depression. Thus gloom, not doom.