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> And yet not very many people think we’re in the middle of a second housing bubble. Really? It seems pretty obvious to me that we're in the middle of a huge b
by modeless 5y ago
> And yet not very many people think we’re in the middle of a second housing bubble.
Really? It seems pretty obvious to me that we're in the middle of a huge bubble. The problem is the bubble may not pop for decades because propping up the bubble is government policy at every level from federal to state to local. And if they ever stop, tons of people will be totally screwed. Never mind that even more people are getting screwed by the bubble...
- Gunax 5y agoI think perhaps you and the author are using bubble to mean different things--namely speculation versus bona-fide demand.
- parkingrift 5y agoIf it takes several decades for the bubble to pop then it isn’t a bubble.
- Beltiras 5y agoIf it's being artificially inflated by policy it's a bubble, even if it takes a very long time for the inflation to pop it.
- parkingrift 5y agoAn economic bubble, by definition, is a scenario where asset prices are significantly divorced from underlying fundamentals. It is not possible to have a thirty year bubble. A thirty year "bubble" means the fundamentals were wrong and we were never actually in a bubble.
- modeless 5y agoYou don't think it's possible for underlying fundamentals to be defied for 30 years, huh? Depends how you define fundamentals I guess. If your definition of fundamentals is "something that lasts 30 years or more" then you'd be tautologically correct.
- parkingrift 5y agoI don't know how something could be "fundamental" if it's wrong for thirty years.