Matt,
The housing market is already correcting itself here in Virginia. My oldest son has just moved back home from North Carolina. He has been pricing new homes. He was able to get a 4 bedroom townhouse for the price of a three bedroom, and he was also surprised when they jumped at his $25,000 discounted offer on another home. Looks like they're trying to cut their losses here in Virginia.

Of course, we're already seeing the same thing with the auto dealers (car related ), offering gimmicks like free gas, and here in our area-wave runners???? (What's that about? If you have to pay those large payments, at least have fun on the weekend???)

Where will it stop?

Wayne

it always makes me laugh a little when i speak to guys in the U.S and they are complaining about gas prices...
In the U.K. we are currently paying on average £1.21 GBP per LITRE which equates to approx $2.50 per LITRE
and they are talking about the price rising to £2 GBP by the end of the YEAR!!
Over here its not the oil companies , but the government taxes that make our fuel so damned expensive - thats how they pay their ridiculous salaries and living expenses.... Oh ..and finance wars in the middle east....

At least you guys are smart enough to pay for your Middle East debt. We simply just print or borrow more money and create a larger deficit year after year. Over 5 trillion (10 total) additional in the past 7 years and that doesn’t even count the wars (fuzzy math theory).

The next generation and their unborn will be happy with us, if we can last that long without the whole thing collapsing.

Do you mean that it's a bad thing that China owns approximately 1/5 of our money? That, on a whim, they could do a mass sell-off and completely crash our economy worse than anyone could have imagined in 1929? That we now have no power to keep out inferior Chinese products because of this possibility? That this will fund their further growth, consumption of oil and construction of new military facilities, more troops and better equipment including nuclear (nuculur?) weaponry?

What could possibly go wrong?

The answer is YES to all of the above regardless of the trickle down, etc, BS we are to believe. We are in trouble.

See you in a week. Heading to the Amphicar National Convention, Wahoo!!!!