Spin!

Germans don’t like McCain.  Still was it really necessary to print this picture (right)?  But what is particularly interesting was

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Sell your house NOW!

Sell your house, unless it stands in Germany. For a while now the Economist warned about the real estate bubble. Now they claim that it’s about to burst, probably a year from now. Read their free leader – the detailed article (not free) is much more detailed and full of scary statistics. Here’s the essence of their message:

    “If weaker house prices push the economy towards recession, the awkward truth is that America’s policymakers will have much less room to manoeuvre than they did after the stockmarket bubble burst. Short-term interest rates of only 3% leave less scope for cuts. In 2000, America had a budget surplus. Today it has a large deficit, ruling out big tax cuts.

    The whole world economy is at risk. The IMF has warned that, just as the upswing in house prices has been a global phenomenon, so any downturn is likely to be synchronised, and thus the effects of it will be shared widely. The housing boom was fun while it lasted, but the biggest increase in wealth in history was largely an illusion.”

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