What goes up must come down: the housing burst

After Monday's free fall, and Tuesday's slow plummet, we now have Wednesday's fake out. Up most of the day then plunging at the end closing down, way down, below that mental high of 11,000, the Dow closed at 10,930 losing more than 71 points.

For months bush has been babbling on about how solid the American economy is. Our national debt is over eight trillion dollars, and inflation has been banging on our door, but the oil boys are in the White House and in our living rooms chanting growth, growth, growth. In October 2005 no one has to die tomorroW.declared, the oil companies to be the big profiteers from our withering economy and that rang true after they came out with record breaking profits for the year (profits over 36 billion in 2005, for Exxon-Mobil, alone). And now we are predicting that housing will continue to slow, and then burst, and to top it off, the worse the hurricane season, the harder the fall.

In the beginning of May, economists were predicting that as long as the jobs reports for May remain strong there will be no pop in the housing bubble, which seemed like something to believe in, for a short while. Some economists believe thirty percent of jobs created during this housing boom were created specifically for the boom, and where are we left as the housing market deflates? Jobless. In early June, May's job reports was 110,000 jobs shy of what they had hoped for.

The predicted "ground zero" for housing bubbles bursting are the places where markets were the hottest, and Florida is one of the hottest, but it differs from other "hot markets" because, not only is it a seasonal market (winter), it's also threatened by hurricanes every single year (and we all know Main Stream Media having been warning us of a "stronger than usual" season this year ). Once the "ground zero" markets begin to fall, almost everyone will be forced to follow.

Interest rates will not be this low for much longer, regardless of what happens on June 29th, Bernanke said pause in rate hikes, not an end to them .