According to the Commerce Department, that whole housing bubble nightmare is just another lie from those Iranezuelans in the Main Stream Media. New home sales are allegedly up by 4.1%, allegedly the biggest rise since March.

Or, NOT A COLLAPSE OF THE AMERICAN ECONOMY. That's the "hook," which we'll explain after the jump.

We say just two things will decide the November elections: the price of gasoline and the health of the rickety real estate market.

Iraq is some mysterious place that may or may not be in Iran, wherever that is. Avoiding law schools, you can safely walk across the entire United States without encountering anyone who can define habeas corpus. Immigration is the big issue for exactly 11% of voters -- mostly because the rest of them don't realize it has something to do with Mexicans.

If gas is under $2.50 a gallon, that's good! (Don't worry; voters won't remember that it was $1.50 a gallon less than two years ago.)

And if homeowners can continue to buy groceries off their equity line, incumbents win! Just put off the collapse until 2007, and by 2008 the millions of people who lost their homes sure as hell aren't going to be voting -- more like, "foraging for food."

Aug. Home Sales Gains Seen As Temporary [AP]

Housing Slowdown Takes Its Toll [WSJ]

-- KEN LAYNE