 | Back from the future collapse | The Oil Drum: Europe | UK House Sellers In Denial About The Property Crisis - Energy Too? |  |
202 comments on The bank panic
Comments can no longer be added to this story.
| Show without comments | PDF version
202 comments on The bank panic
Comments can no longer be added to this story.
| Show without comments | PDF version
User login
Personnel
Editors
Contributors
Peak Oil Primers
Archives
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009
- May 2009
- April 2009
- March 2009
- February 2009
- January 2009
- December 2008
- November 2008
- October 2008
- September 2008
- August 2008
- July 2008
- June 2008
- May 2008
- April 2008
- March 2008
- February 2008
- January 2008
- December 2007
- November 2007
- October 2007
- September 2007
- August 2007
- July 2007
- June 2007
- May 2007
- April 2007
- March 2007
- February 2007
- January 2007
- December 2006
- November 2006
- October 2006
- September 2006
- August 2006
- July 2006
- June 2006
- May 2006
- April 2006
- March 2006
Vital Trivia
License
This work is licensed under a Creative Commons Attribution-Share Alike 3.0 United States License.
GAIA Host Collective
"There is over capacity in both housing and the financial industry."
I find this a very strange idea with respect to housing. The best sense I can make out of it is that you mean there is over capacity to support the current price of housing. But if you consider that the cost of housing is likely to return to its historic trend line (and below by way of over-correction) as I do, then the idea that capacity should be reduced to stabilize prices at an inflated level is rather wrong-headed. I suggest there is lack of recognition of just how much of a bubble we have in housing.
I mean there has been a misallocation of resources. Too many home builders and investment bankers, not energy production, not enough hi tech companies working on break through energy production technologies.
Perhaps we are in agreement on this point.
We do agree on many of the dynamics. You're way of stating misled me. What I see from my perspective is a shortage of housing. If it were not so I could be buying a house rather than building my own. As owner-builder, I suffer greviously from govenment regulations but see them as part of the vested commercial interest's way of increasing their profits. Government is merely their servant.
For quite some time now, the household size in the US has been getting smaller. This is one of the big drivers of demand for more housing. Fewer people in larger houses, the affluent suburban dream, is not consistent with peak oil. It's hard to imaging household size getting much smaller - rather, as economic times get tougher and more people choose to live with their family or friends for longer periods of time, it will take even longer to work through the excess housing inventory that sparked the credit crisis.