Mortgage and Loan: Confidence, Man

"No, really, this is a good deal. They ain't makin' any more land, after all. Look at me! I'm on a freakin' island!"

So, about those new home sales:

WASHINGTON - Sales of new homes fell in June by the largest amount in four months while the inventory of unsold homes climbed to a record high, providing further evidence that the once-booming housing sector is slowing.

The Commerce Department reported Thursday that new home sales dropped by 3 percent last month to a seasonally adjusted annual sales pace of 1.131 million units. It marked the first drop since an 11.5 percent plunge in February.

What's particularly interesting about this article is that the highest performing sector of business is manufacturing. Wasn't globalization supposed to eliminate manufacturing as an industry? Weren't we all "glocal," or "flat," or whatever the hell Tom Friedman was saying?

And meanwhile, mortgage rates are taking a slight dip, with even the faintest hope that Bernanke will stop fighting the last war and cut the Fed's rate-increase campaign.

As my man Marinite ably points out, people will not believe a crisis is happening until it affects them personally. As long as there's even a shred of hope that the market won't crash hard, they will continue believing that it's ok to go for that creative mortgage, leverage their home equity for granite countertops, and so on. And the Sawyers of the world just keep getting away with it....

Posted at July 27, 2006 05:25 PM

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"No, really, this is a good deal. They ain't makin' any more land, after all. Look at me! I'm on a freakin' island!" So, about those new home sales: WASHINGTON - Sales of new homes fell in June by the largest amount in four months while the inventory of unsold homes climbed to a record high, providing further evidence that the once-booming housing sector is slowing. The Commerce Department reported Thursday that new home sales dropped by 3 percent last month to a seasonally adjusted annual sales pace of 1.131 million units. It marked the first drop since an 11.5 percent plunge in February. What's particularly interesting about this article is that the highest performing sector of business is manufacturing. Wasn't globalization supposed to eliminate manufacturing as an industry? Weren't we all "glocal," or "flat," or whatever the hell Tom Friedman was saying? And meanwhile, mortgage rates are taking a slight dip, with even the faintest hope that Bernanke will stop fighting the last war and cut the Fed's rate-increase campaign. As my man Marinite ably points out, people will not believe a crisis is happening until it affects them personally. As long as there's even a shred of hope that the market won't crash hard, they will continue believing that it's ok to go for that creative mortgage, leverage their home equity for granite countertops, and so on. And the Sawyers of the world just keep getting away with it....