[syptopsygieds]

Economist Dean Baker wrote an excellent article on the Housing Bubble called the "Housing Bubble Fact Sheet." It can be found at:
HousingBubbleFactSheet

Baker describes all of the factors that have caused the housing bubble and why it is not sustainable. Also noteworthy is that consumer spending financed through home equity borrowing totals $200-300 billion annually. This amounts to 1.7-2.5% of our $12 trillion GDP. Loss of this spending alone would greatly reduce our GDP increases. In addition, loss of employment related to the housing bubble could be as high as 5 million jobs.