James Kunstler excerpt

I hasten to add it is a mistake to suppose that the US industrial economy has already been replaced by a so-called “information” economy or a consumer economy. In reality, manufacturing activities have been insidiously replaced over the past twenty years by a suburban-sprawl-building economy – and the mass production of suburban houses, highways, strip malls and big box stores is just a different sort of manufacturing than making hair driers and TV sets. The sprawl industry also drove a reckless debt creation racket and multiple layers of traffic in mortgages and spinoffs of mortgages (such as the derivatives trade based on bundled, securitized debt) which represents, at bottom, hallucinated wealth that in turn has spread false liquidity through the equity markets and is certain to affect them badly sooner or later. All this is what we have been calling the “housing bubble” and it is now beginning to fly apart with deadly effect.