The Dawn and Joy of the Real Estate Market
I’ve been reading a lot of about how the real estate market bubble is going to burst. But I am curious about the term “bubble” as it applies to the real estate market. When you think about bubbles, what do you think? Thin, fragile, ready to burst? That’s what I think. Doesn’t irrational exuberance make more sense?
May 4th, 2005 at 4:43 pm
I think the Fed lowered the interest rate too far and too fast, causing this huge run up in prices and size of houses. So we may have temporarily stimulated the economy at the expense of paving over large amounts of land with McMansions. And the interest rate will really hurt as it goes back up. I think a little stability would have been better.