A plague on both your houses

The housing bubble has burst. Those who ignored it and bought on the way up will get burned on the way down.

“Storm clouds gather over housing” by DALL•E

Housing is the business cycle. Or so wrote economist Edward Leamer in a 2007 research paper where he argued housing leads the economy. When prices go up, builders build. But the economy sinks when prices drop, and construction activity dries up. That's what happened when the housing bubble burst in 2006. Price…