GDP Up, Inflation Down

U.S. gross domestic product, a measure of all goods and services produced within U.S. borders, grew at a revised 4.3 percent annual rate in the July-to-September period, the fastest pace since the first three months of 2004, the Commerce Department said.

And inflation dropped during the period easing fears of continuing Fed rate hikes. So, productivity is up, inflation flat or lower and jobless claims slumped. Why the simmering worry on the home front? We believe we have figured it out. Be honest now and take this simple test:

Raise your hand if you voted for John Kerry.

Bubble Bloggers Revert to Mean

In the last ten days consumer confidence jumped, new home sales hit new all time high levels, the stock market flirted with 11K and the bubble bloggers went ballistic with rage. How could this be happening, they ask? The most common bubble head explanatiion: the American people are stupid. The most common bubble head reaction: anger. One need only sift through the detritus left on this website by the bubble heads to observe the rage up close. But, in the spirit of the Holiday season, we offer the bubble heads these tips suggested by the American Psychology Association:

Breathe deeply, from your diaphragm; breathing from your chest won't relax you. Picture your breath coming up from your "gut."

Slowly repeat a calm word or phrase such as "relax," "take it easy." Repeat it to yourself while breathing deeply.

Use imagery; visualize a relaxing experience, from either your memory or your imagination.
Nonstrenuous, slow yoga-like exercises can relax your muscles and make you feel much calmer.

If you wish to conduct further field studies of the bubble heads in their natural environment, you can visit the Jonestown of bubble heads: thehousingbubble2.com. Make sure you use plenty of DEET and, if offered, don't drink the Kool Aid.

Investors Business Daily Spots Bubble

Bubble Blogs, A Market Barometer?

The quantity of housing bubble blogs reached new highs over the Thanksgiving weekend. Today, Google reports 1,810,000 "real estate bubble blogs" and a mind numbing 2,510,000 "housing bubble blogs." As the number of blogs increases, the quality has taken a sharp decline. "When free lance writers in northern Arizona climb aboard, you know the train is headed off the cliff," says a report from the NAR. "With this many morons fobbing themselves off as real estate investment experts, you know the time to buy property and homes is now" the report concludes.

Global Warming leads to soft landing scenario

Rising sea levels caused by global warming will permanently eliminate densely populated areas on both coasts, experts warn. Southern California, Florida and Cape Cod have already seen huge price run-ups in anticipation of the calamity which has been described by Alan Greenspan as "frothy." As coastal residents are forced inland, an activity dubbed "surge purge" by Dr. Salvadore "Mustang" Sali, adjacent property valuations are pushed higher by the heavy demand. Of course, the permanent loss of buildable property heightens the effect of surge purge by negatively impacting the supply side. In his soon to be published book, "The Atlantis Effect", Dr. Sali points to a lesson learned four thousand years ago. "As Atlantis sank and residents were forced to flee to nearby Sicily, the median home prices there skyrocketed," he writes. "In 1997 BC, only eighty-three grams of salt put you into a median home in the Sicilian market. Five years later, after the last of Atlantis slipped under water, that same home cost more than two kilos of salt!" Dr. Sali sees a repeat of the Atlantis scenario already unfolding in the US and around the world. "More of us will be competing for less land. It's that simple."

Double Bubble

This blog is dedicated to the memory of Ben Jones, the "freelance writer" who posts thehousingubble2.com which is sponsored by the real estate biz. Or, more accurately, the memory of what is left of Mr. Jones's credibility. We posted to Ben's blog and he quickly deleted our simple and respectful question: "What's with all the links to real estate agents, lenders and other bubble heads?" So, Ben, we're giving you another chance. What's up?