Uh-Oh/Yay!/Hmm...

NYT story on the uncomfortable similarites between the current real estate market and the internet boom.

The question of the day is: how many prime rate points will it take to puncture the balloon?

And the technical questions for Dr. X are: if the dollar devalues another 20% or so (which seems very likely), won't this tend to compound problems of mortgage-holding institutions whose real estate holdings themselves start falling - as the value of their debt declines as well? Can they cover the bases by buying other currencies? And won't that drive a spiral of currency decline?

I am of course deeply concerned about our nation's economic health. On the other hand, I rent. And I suspect that some real estate relief in San Francisco would be welcome as well, if they entire economy didn't collapse.

Next painting, I sell for Euros.