Click on the title of this post and read what this guys says.
Essentially, it is "yes, there is a housing bubble, but that bubble gives people jobs and gets money into the local economy. And now that other types of employment are picking up steam, couldn't this just be a nice, safe bridge while most industries other than construction are in the toilet?"
Interesting arguement, but seems a little risky to me. What about the down side to NOT SAVING A DAMN THING? To risking more debt on your HOME than it is WORTH? How about that? How about needing to borrow cash from China and Africa because we can't pay for our own government? Doesn't that leave us a little vulnerable?
The shortcoming in the analysis with this guy is that even with increased US employment in the housing and building industries, we are living beyond our means. The home equity lottery that is funding these jobs is going to dry up. He says that other industries will pick up the slack and hire more Americans. The question is: how is industry going to come up with that kind of money? It is a huge amount of money. How are hurting industries suddenly going to be able to hire as many people as are displaced when home equity spending goes down? They won't.
On top of that, happy homeowners are now going to have to live within their means, the thought of which is terrifying to them, and are expected to SAVE on top of that?
It doesn't add up.
There's no doubt that the pain of the 2000 recession was numbed by the real estate market. And the crazy spending that came out of it. But what will be the cost of delaying the pain? Don't tell me there isn't one. There is.