Booming Housing Market a Sign of Fragile Economy

Fear -- and artificially low interest rates -- may be propping up the global economy.

1 minute read

July 7, 2005, 2:00 PM PDT

"The role of phenomenally low long-term (inflation-adjusted) interest rates in covering up a multitude of weaknesses in the global economy is all too apparent. Soaring house prices worldwide are propping up consumer demand in many countries...America has been the single biggest beneficiary of this freakish low interest rate environment, with everyone seeming to borrow money like it is going out of style. Homeowners, backed by rising house prices, are piling up debt. The federal government has thrown fiscal prudence out the window. The country as a whole is absorbing an astounding three-quarters of global excess savings. But, as long as interest rates remain low and growth high, Americans can laugh at predictions that their excesses are laying the seeds of ruin."

Thanks to Michael Dudley

FULL STORY: An Economy Of Fear

Wednesday, July 6, 2005 in Tom Paine - Common Sense

Government / Politics United States

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Start Learning

Advertise with us

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.