The Sky is Falling?
About two weeks ago, the New York Times claimed that the housing market was doomed because the ratio of rents vs. buying price was so skewed. As I understood the argument, rents were so low that it made far more sense to rent rather than buy and that meant that the bubble was about to pop. So today the Times ran another article, this time on the front page, stating that rental prices were rising. Their conclusion? “Evidence that housing boom is ebbing.” I realize that no one at the Times actually reads the damn thing and I understand the Times’ fierce determination to bring down the housing market (and anything else they can grab on to) but really, if they think that declining rents and rising rents both mean the end of the world is near (“women, minorities hardest hit”) then perhaps we should interpret their economic reporting for what it is: “all the bad news we can dream up”. Consistency may well be the hobgoblin of little minds but self-contradictory conclusions are evidence of no mind at all.