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Tuesday, August 24, 2010

Housing Obsession Ending?

Existing home sales down a lot.
That is a good thing.
We have invested too much in houses.
Houses are liabilities. They are expensive to maintain.
Paint, plumbing, roofing, remodeling, property taxes, insurance, utilities, etc.
You do get to live in them. So a need is filled. But we have too many and they are too big and luxurious.
Simple is better.
Our society will do better by investing in productive assets.
The housing industry was bloated by government policies and a real estate mania.
Better that our energy goes elsewhere.

New balance is coming. Rebalancing is painful to some, but not all, and in the long run we will all be better off with less energy going into housing.

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