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Death Spiral Forecast To Hit States


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HOLA441

http://observer.guardian.co.uk/world/story...1838162,00.html

"We have these terrible perfect storm conditions. The real estate market in America has gone south. We will get a death spiral," said Kunstler.

'Dead zone' threat to US suburban dream

Petrol price rises may cause the housing bubble to burst, triggering global recession and the fall of America's Eden, writes Paul Harris in New York

Sunday August 6, 2006

The Observer

Levitown is a bus ride beyond the aptly named Hicksville in the outer suburbs of New York. Its lawns are neat and its houses boxy. From many gardens fly American flags and yellow ribbons: typical displays of suburban patriotism.

It was here, almost 60 years ago, that modern American suburbia was born. Work began on the town in 1947 and Long Island potato fields were soon covered with a radical new form of housing: single, similar, purpose-built houses designed for car-owners and aimed at families. At the time it was a shock. Social scientists scoffed at Levittown. But within decades the suburban experiment had come to define US life and what began in Levittown now covers the country in urban sprawl, strip malls and a way of life revolving around the car.

Now there are fears it is coming to an end. For the past five years America has been gripped by a housing price bubble. It has funded a huge expansion of suburbia as Americans poured their wealth into their homes. Yet many think that bubble may be about to burst. That would send shock waves through the US economy and into the rest of the world. Nor is that the only threat. The rising price of oil is squeezing suburbanites. It threatens a way of life where pavements are rare and everyone moves by car.

Click on link above for full story

Edited by gruffydd
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HOLA442

http://observer.guardian.co.uk/world/story...1838162,00.html

"We have these terrible perfect storm conditions. The real estate market in America has gone south. We will get a death spiral," said Kunstler.

'Dead zone' threat to US suburban dream

Petrol price rises may cause the housing bubble to burst, triggering global recession and the fall of America's Eden, writes Paul Harris in New York

Sunday August 6, 2006

The Observer

Levitown is a bus ride beyond the aptly named Hicksville in the outer suburbs of New York. Its lawns are neat and its houses boxy. From many gardens fly American flags and yellow ribbons: typical displays of suburban patriotism.

It was here, almost 60 years ago, that modern American suburbia was born. Work began on the town in 1947 and Long Island potato fields were soon covered with a radical new form of housing: single, similar, purpose-built houses designed for car-owners and aimed at families. At the time it was a shock. Social scientists scoffed at Levittown. But within decades the suburban experiment had come to define US life and what began in Levittown now covers the country in urban sprawl, strip malls and a way of life revolving around the car.

Now there are fears it is coming to an end. For the past five years America has been gripped by a housing price bubble. It has funded a huge expansion of suburbia as Americans poured their wealth into their homes. Yet many think that bubble may be about to burst. That would send shock waves through the US economy and into the rest of the world. Nor is that the only threat. The rising price of oil is squeezing suburbanites. It threatens a way of life where pavements are rare and everyone moves by car.

Click on link above for full story

Er... Gruffy, RB posted this earlier today under 'H P I - M E W "greatest Misallocation Of Wealth Ever"'.

Remember to read the latest thoroughly before starting duplicate threads.

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