The hole in Dennis' argument is that there is an overall negative effect on the economy from the virtual halt in housing activity. There is a lack of healthy homebuilders providing jobs and moving material markets. The other issue is the negative effects of the boatload of bad debt on the financial markets as well as the overall economy. The housing crisis is as deep as the economy is sick.
Housing is what started this mess so although Dennis' analysis of the numbers strike hope in the hearts of homeowners, Realtors and builders, there is no denying the ongoing economic pain from the housing slump. The fact that most homeowners will not be effected by the housing crisis just doesn't play out in the big picture. Look at the long tail of the retail projections for this year's holiday spending. (Although Black Friday was unexpectedly positive.)
From Dick Gaylord, 2008 President of the National Association of Realtors, "I have to give credit to Dennis Kneale for his commentary on CNBC last week. He provides the best assessment I have heard thus far about this so-called crisis and where the problem really lies. Listen to what he has to say and please forward this to your fellow REALTORS® and all of your clients today!"
The NAR is nothing if not the best darn cheerleader at the game. Now Realtors, excuse me I mean REALTORS® (what a pain), get those cobwebs out of your mind, put on your happy face and get out there and spread the cheer. Everything's just fine in Realtor world!
Nod to The Big Picture.