A Season for Change: The Lunar New Year and the Lending Meltdown

In this and an upcoming post, I will write about how the Lunar New Year, Lent and the lending meltdown all tie together and can give us some insight into how to deal with the housing market and the economy. It is taking a while to write, so it will be a two-parter: Today, Part One, “The Lunar New Year and the Lending Meltdown.”

Two events occurred earlier this month, the Lunar New Year and Lent, which shine some light on how to deal with our current housing and economic difficulties. One is usually associated with the Eastern tradition; the other is usually associated with the Western tradition.

The event associated with the Eastern tradition is the current Lunar New Year known as the Year of the Rat. According to Feng shui master Raymond Lo, this current lunar New Year will see the earth element sitting atop water, suggesting an outward solidity built on sliding foundations. Whether you follow the Lunar New Year tradition or not, a more accurate description of our current housing situation is not possible: Unsound lending practices, homeowners using their houses as ATMs, expectations that housing prices will go up endlessly, and home prices that are way out of line with incomes are all features that point to a housing market that was “built on sliding foundations.” The exterior looked solid during the boom; but the foundation was resting on sand.

Photo Courtesy dennysmagiklan

Upcoming: Part Two, “Lent, the Lending Meltdown, and a Way Forward.”