All was well with the bubble. Was.

Jeff Matthews points out how just a few months can change everything for a homebuilder. Despite what the government continues to spew out in the way of positive (if more than notionally massaged) statistics, what public companies have to report must be regarded with slightly less skepticism, if only based on the idea that someone, someplace within, is personally liable for those reports (something we will never be able to say about government reports).

Funny that just a few weeks ago, Wired was praising bubbles for their ability to spur innovation. We certainly have seen a lot of innovation in the housing market – new fangled products like zero-down loans, reverse amortizing mortgages, and optionable financing where the borrower decides what they have to pay, if anything at all.

I don’t see how this bubble is going to lead to any progress, unless you call mass foreclosures the great invention of our time.

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