The Twin Debacles

How the housing collapse is like the Iraq war.
By Daniel Gross
Posted Friday, June 15, 2007, at 5:48 PM ET

What do Iraq and the U.S. housing market have in common? At first blush, not much. Iraq, which has taken the lives of thousands and ruined America's reputation abroad, is far more disastrous than the housing collapse, which has been merely financially devastating.

Nonetheless, the twin debacles, which are defining the foreign policy and domestic economy of the second Bush term, have significant similarities, especially in the way that their public- and private-sector architects and promoters have behaved. Iraq and the housing market offer a case study in how two phenomena can go from being extremely popular to deeply unpopular in a matter of months. And with Iraq having turned into a disaster about two years before housing did, the way Iraq is playing out in the culture may predict what will happen in housing.