This is a great presentation on the housing bubble and the current economic disaster. The bottom line is:
I strongly recommend you not buy a house right now. Instead, rent a place, put your feet up, open a bag of chips, and watch the housing market crash. We’re not going to bounce at the bottom, we’ll stay there a while, so it’s not something you’ll miss.
From the archive:
The dot-com crash of the early 2000s should have been followed by decades of soul-searching; instead, even before the old bubble had fully deflated, a new mania began to take hold on the foundation of our long-standing American faith that the wide expansion of home ownership can produce social harmony and national economic well-being. Spurred by the actions of the Federal Reserve, financed by exotic credit derivatives and debt securitiztion, an already massive real estate sales-and-marketing program expanded to include the desperate issuance of mortgages to the poor and feckless, compounding their troubles and ours.
That the Internet and housing hyperinflations transpired within a period of ten years, each creating trillions of dollars in fake wealth, is, I believe, only the beginning. There will and must be many more such booms, for without them the economy of the United States can no longer function. The bubble cycle has replaced the business cycle.