If you read the Economist, (which all of you should!), you would notice how many conflicts around the world there are that we could stick our nose into that never make it into our mainstream press. From Rhodesia to Nepal, we have ample opportunity to oust leaders, feed people and police the world. We choose only a very few.
BTW, the number one export of Somalia was uranium. We went there. Coincidence or Oliver Stone movie plot? You make the call.
Consumer confidence is a very important indicator of the economy. The uncertainty about Iraq is an issue that will probably have to be resolved before we see a recovery. We are going into a nesting mode and making our homes our sanctuary from that big old cruel world out there.
On the other hand isn’t it possible we have just all bought enough stuff for awhile?
I saw Sam Zell, the largest property owner in the country outside the government, being interviewed along with a CEO of a housing developer (KB homes, I think) on TV. He was adamant that a pending problem was that developers, like the CEO across the table, make donations to charities that turn and give the money to otherwise unqualified buyers for their down payment. This essentially allows underqualified buyers to get into homes with no money down. Zell’s point was there is significant potential of default with these buyers and this is a questionable business practice. The CEO said it was 20% of his sales and if we want to see more people own homes this type of arrangement is needed.
Risk doesn’t go away, it only gets transferred. Who is holding this risk? Certainly not the builder. Time will tell the answer to this. I fear it’s us taxpayers.
Dr. Douglas Rice 