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Housing Tumbles (or, Why the US is Headed Towards a Bond Market Disaster)

Thursday, June 2, 2011, 3:56 PM
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There has never been an economic recovery without a rebound in housing. Of course, we don't really have an economic recovery now; it's more of a statistical mirage, thanks to trillions in thin-air money printing.  And we don't have a recovery in housing.

I have written extensively on the housing topic over the years because a rebound in housing will be an important signpost that some sort of stable economic recovery is actually underway.  

In the Crash Course chapter on bubbles, I suggested that if the housing bubble behaved like other bubbles throughout history, then 2015 would be a reasonable place to begin looking for a rebound. The evidence is now beginning to support that rough guess.

We begin with home prices, which hit a new low in the post-bust era, effectively rolling prices back to those last seen in 2002:

 

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