housing bubble? hubba bubba.
Dutch tulips, tech stocks, and now housing… it seems like every time there’s a huge run-up, someone’s talking about a bubble… In the past few weeks, the supposed housing bubble has been a hot topic of discussion..
- The Economist: The global housing boom
- The Economist: After the fall
- Businessweek: Housing Bubble — or Bunk?
- Babble about a housing bubble
- QandO: The Next Bubble To Burst?
So.. after reading all of this, I’m still not sure what to think — while it’s true that housing prices have, indeed run up dramatically over the past few years, and yes, many of those prices are on the backs of large debt loads (and interest-only loans).. housing is inherently not as volatile as tulip bulbs or stocks — you can’t just dump a home if you get freaked out, right? I mean, you gotta live somewhere, so if there is indeed a housing bubble wouldn’t it deflate slowly instead of pop?
While I’m on the subject of bubbles, remember the bubble gum, Hubba Bubba? That was the gum that didn’t stick to your face after it burst. Man, I wonder if they still play that commercial with the cowboy saturday mornings.. Do they still play cartoons Saturday mornings? Hmmm. Do people still chew bubble gum? Seems like super minty gum like Eclipse is much more popular nowadays.
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