The Ignorant Investor

You kind of wonder when news like this:

BAGHDAD, Iraq - Roadside bombs killed three U.S. soldiers Monday in two separate attacks and 16 Iraqis were killed elsewhere, including five teachers and their driver who were shot to death in a classroom by suspected insurgents disguised as policemen.

Will begin to jibe with news like this:

WASHINGTON - Defying expectations, sales of previously owned homes rose in August to the second-highest level on record with home prices rising at the fastest pace in 26 years.

To buy a home in this market requires an optimism that borders on the absurd. Meanwhile, we're spending billions using an army -known primarily for its skill in blowing our enemies up- to build a modern democratic state in a place where insurgents are angry enough to shoot some hapless teachers to death. Hmm, in both cases could we be seeing the same form of irrational optimism? Our government with it's mideast adventure and American homebuyers and their gargantuan, no-principle mortgages?

Maybe the two stories do go together, after all.