By Patrick follow 2012 Nov 3, 3:42am 733 views 1 comment
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Chart y-axis is 0-100 for both Real Dow and Real Homes; for each, the all-time high is made equal to 100. The Real Dow and the 1.64 %/yr curve (here extrapolated) are from "the compelling Real DJIA, 1924-now" at http://homepage.mac.com/ttsmyf The Real Homes data are from a Robert J.
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Massive mispricings are evident: please DO NOTE in section “Bubbles relative to GDP” near the bottom of
the near-GDP sizes of both recent bubbles. “The main enabler of sizable asset price bubbles (very harmful!) is keeping the real price histories out of sight.”