Comments on: Fun with Tom and Rex: A Discussion of the Housing Market Situation http://www.bizzyblog.com/2006/09/07/fun-with-tom-and-rex-a-discussion-of-the-housing-market-situation/ The Business End of the Blogosphere Sun, 23 Nov 2008 14:14:18 +0000 http://wordpress.org/?v=2.5 By: rex http://www.bizzyblog.com/2006/09/07/fun-with-tom-and-rex-a-discussion-of-the-housing-market-situation/#comment-29203 rex Thu, 07 Sep 2006 20:01:41 +0000 http://www.bizzyblog.com/2006/09/07/fun-with-tom-and-rex-a-discussion-of-the-housing-market-situation/#comment-29203 Clearly, I won this "debate." Unlike Tom, I do not have my mind made up before I see the facts. Unlike Tom, I looked at the evidence and followed where it led me. Unlike Tom, I am not fixated on dictionary definitions, but on what's happening in the real world. Unlike Tom, I can call a spade a spade. Unlike Tom, I don't see this as some sort of media or political conspiracy, where the only thing that matters is whether you've scored a debating point against the hated MSM or DNC. It's not a liberal or a conservative view to see that the housing market is in a free fall. Just look at a few facts: Starts down 13% y-o-y; new home sales down 21.6%; existing home sales down 11.2%; home builders stocks down 40% y-o-y. If Tom had had his way, I suppose we'd have seen lots of headlines in 2001 saying: The Nasdaq hasn't been in a bubble; it's just returning to normal!!!! Or this one in 1638: "Don't worry about losing your life savings!!! Tulip prices are just returning to normal!" "Normal" can be a long ways down, my friend. A lot of money can be lost on the way to "normal." One more thing: If home prices are now returning to "normal," what were they before? Maybe.... abnormal?? Clearly, I won this “debate.” Unlike Tom, I do not have my mind made up before I see the facts. Unlike Tom, I looked at the evidence and followed where it led me. Unlike Tom, I am not fixated on dictionary definitions, but on what’s happening in the real world. Unlike Tom, I can call a spade a spade. Unlike Tom, I don’t see this as some sort of media or political conspiracy, where the only thing that matters is whether you’ve scored a debating point against the hated MSM or DNC.
It’s not a liberal or a conservative view to see that the housing market is in a free fall. Just look at a few facts: Starts down 13% y-o-y; new home sales down 21.6%; existing home sales down 11.2%; home builders stocks down 40% y-o-y.
If Tom had had his way, I suppose we’d have seen lots of headlines in 2001 saying: The Nasdaq hasn’t been in a bubble; it’s just returning to normal!!!!
Or this one in 1638: “Don’t worry about losing your life savings!!! Tulip prices are just returning to normal!”

“Normal” can be a long ways down, my friend. A lot of money can be lost on the way to “normal.”

One more thing: If home prices are now returning to “normal,” what were they before? Maybe…. abnormal??

]]> By: Pundit Review » Blog Archive » Old and new media debate the housing bubble http://www.bizzyblog.com/2006/09/07/fun-with-tom-and-rex-a-discussion-of-the-housing-market-situation/#comment-29198 Pundit Review » Blog Archive » Old and new media debate the housing bubble Thu, 07 Sep 2006 18:40:40 +0000 http://www.bizzyblog.com/2006/09/07/fun-with-tom-and-rex-a-discussion-of-the-housing-market-situation/#comment-29198 [...] The second post is an interesting email exchange with Dow Jones Marketwatch housing reporter Rex Nutting. [...] […] The second post is an interesting email exchange with Dow Jones Marketwatch housing reporter Rex Nutting. […]

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