Thursday 12 September 2013

Wolf Richter: Housing Bubble In Full Bloom, Zany Price Increases, And Now A Sudden Slowdown « naked capitalism

Wolf Richter: Housing Bubble In Full Bloom, Zany Price Increases, And Now A Sudden Slowdown « naked capitalism:

"Cities have seen dizzying home-price increases that are giddily reported and infused with pandemic housing hype and trillions from the Fed into a self-propagating force. And it has become accepted wisdom that the housing market would recover all the way to where it was in 2006, which would represent a complete recovery, a sign that the Fed has done its job, that it cured at least one of the ills that has been dogging this economy for so long.

Alas, not too long ago, everyone had called 2006 “the peak of the housing bubble,” the apogee of all craziness, one of the causes of the disaster that followed, and everybody had tales of just how crazy it was back then. All this is forgotten. The prices of 2006 are suddenly no longer the peak of the housing bubble, but a goal to get back to."

'via Blog this'

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