The fabulous Bush economy has produced the biggest year over year drop in the median home price ever recorded.
Or maybe it's just that Bush is borrowing so much to finance the tax cuts, that interest rates are making mortgages unaffordable.

http://www.breitbart.com/news/2006/10/25/D8KVN3000.html

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“ The subjects of every state ought to contribute towards the support of the government, as nearly as possible, in proportion to their respective abilities; that is, in proportion to the revenue which they respectively enjoy under the protection of the state.”

Adam Smith , The Wealth of Nations 1776

"We have always known that heedless self-interest was bad morals; we know now that it is bad economics"
FDR's second Inaugural Address

Or maybe it's that dumbasses nationwide paid inflated prices for homes and then secured 100% variable rate financing to boot. Now that there's a glut of these spendy palaces on the market that the realtors are having trouble moving, it's all about the Bush man..........weak , goober. weak.

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Mr. Obama, please release the UFO files!

The median price dropped 2.5% over the last year. That baaaaaad Bush. Making housing more affordable. What was he thinking?

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"You don't have to practice being miserable. Everything else we're gonna work on." - A wise Platoon Sgt.

The economy has been propped up by the rise of housing prices, and by the spending supported by borrowing against that rise. This was made possible by low interest rates. The huge deficits have dried up the surplus of available lending, and interest rates are rising, there is no more cheap money to fuel the housing boom.
Now that that is at an end, what happens to the economy?

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“ The subjects of every state ought to contribute towards the support of the government, as nearly as possible, in proportion to their respective abilities; that is, in proportion to the revenue which they respectively enjoy under the protection of the state.”

Adam Smith , The Wealth of Nations 1776

"We have always known that heedless self-interest was bad morals; we know now that it is bad economics"
FDR's second Inaugural Address

Or maybe you don't understand what you are talking about .... again. When interest rates went down, demand for housing went up ... when interest rates went up, demand for housing has gone down .. see any trend? If you don't understand simple economics, why even comment? Did Foley have something to do with it?

Oh, another thing, why would Bush need to finance the tax cuts when revenues are already up and the deficit is down?

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"I miss the days when they made toys that could kill a kid."
- Jerry Seinfeld

OH NO! A 2% drop in one year! HOLY SHIT! What am I to do since the value of my house went up over 80% in less than 5 years. How will I ever cope? Time to go find a bridge I guess.

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Anyone ask Hillary what kind of underwear she wears, yet?

Lt. Gov Diane Denish on Bill Richardson "The governor, she said, "pinches my neck. He touches my hip, my thigh, sort of the side of my leg."

At least the OP admitted the economy was fabulous.

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"I miss the days when they made toys that could kill a kid."
- Jerry Seinfeld

Because when he took office there were no deficits, there was a surplus, and the National Debt was being paid off, which caused interest rates to drop.

This year the government will have to borrow about 300 billion dollars to finance the tax cuts, not as much as last year, but it's still a half a trillion dollar difference to the credit markets, because in 2001, the government wasn't borrowing 300 billion, they were paying off over 200 billion.

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“ The subjects of every state ought to contribute towards the support of the government, as nearly as possible, in proportion to their respective abilities; that is, in proportion to the revenue which they respectively enjoy under the protection of the state.”

Adam Smith , The Wealth of Nations 1776

"We have always known that heedless self-interest was bad morals; we know now that it is bad economics"
FDR's second Inaugural Address

The economy will do the same thing in response to the 2% drop in housing prices it did when the dot-com boom collapsed - it will adjust and carry on.

People talk about these "surpluses" as though it was real money. The "surpluses" were projections of future tax revenue, not actual dollars sitting in a bank.

When the dot-coms went splat, so did the projected tax revenue.

Matt

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De duobus malis, minus est semper eligendum

When did interest rates drop during the end times of Clinton? Interest rates were going up, up, up after long-term debt were financed with short-term notes, which consequently flooded M1, improperly altered reserve ratios at banks and freed up TOO much cash to be loaned. Hence, the shortage of capital in 2001 and 2002 [and the recession]. When too much cash is available for loans, interest rates are raised to make money more difficult to borrow.

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"I miss the days when they made toys that could kill a kid."
- Jerry Seinfeld

Um... by any chance were you aware that UK and Australia have also been experiencing exactly the same trend in housing prices?

For your information, serious economists have been discussing the world-wide housing 'bubble' for over a year now... ergo, the Bush-bashing isn't justified or substantiated here.

Precisely, the Economist has specified that the rise in housing prices isn’t limited in just the United States, but that prices have been reaching record levels all across the globe. When you factor in low interest rates and lack of trust in the stock market, you get the perfect reason to invest in real estate.

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"I miss the days when they made toys that could kill a kid."
- Jerry Seinfeld

Take a course in economics, and check out reality.

Borrowers compete for available cash by bidding up interest rates, the more money available the lower the rates.
When the Federal government borrows 300 billion, that is 300 billion that is not available for the other borrowers.
When the government pays off more than it borrows, that is additional money available for private borrowing, and interest rates fall.

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“ The subjects of every state ought to contribute towards the support of the government, as nearly as possible, in proportion to their respective abilities; that is, in proportion to the revenue which they respectively enjoy under the protection of the state.”

Adam Smith , The Wealth of Nations 1776

"We have always known that heedless self-interest was bad morals; we know now that it is bad economics"
FDR's second Inaugural Address

Be careful throwing rocks here...

The massive debt financing required by the Bush Administration to cover their massive deficits really is only a fairly small drop in the bucket of the world-wide credit market.

Indeed, with the prevailing low interests rates running at historically low levels (in real terms) over the last 5 years or so around the globe, and record corporate profits and record commodity prices for natural resources means that the credit market is flooded with 'supply' right now.

Just remember that the Oil Shieks need to park their mega-petro-profits in Western banks...

Interest rates are still incredibly low when you compare it the the rates over a decade ago. Do you remember when it was around 13%.

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"Chaplain Charlie will tell you about how the free world will conquer Communism with the aid of God and a few marines! God has a hard-on for marines because we kill everything we see! He plays His games, we play ours! To show our appreciation for so much power, we keep heaven packed with fresh souls! God was here before the Marine Corps! So you can give your heart to Jesus, but your ass belongs to the Corps! Do you ladies understand?"