Great book review from NYT. Basically despite protestations from TPTB, bubbles are recognizable & predictable. It is shameful that TPTB willfully ignore them forming.
Some of the book’s findings are obvious. Bubbles are dangerous? Gee, you don’t say. But others are revelatory. Americans have every reason to be ashamed of the real estate boom. Many of us believed that we had earned the instant wealth we accrued as housing prices spiked. But people worldwide suffered when this easy money disappeared.
It turns out that the United States isn’t the only nation where a banking crisis was preceded or accompanied by a real estate bubble. The authors found that over the last 100 years, this has happened in tandem with 21 major banking crises. No wonder they suggest the International Monetary Fund keep a close eye on property values.
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Great book review from NYT. Basically despite protestations from TPTB, bubbles are recognizable & predictable. It is shameful that TPTB willfully ignore them forming.
Recession, you look familiar....
best quote from article:
Some of the book’s findings are obvious. Bubbles are dangerous? Gee, you don’t say. But others are revelatory. Americans have every reason to be ashamed of the real estate boom. Many of us believed that we had earned the instant wealth we accrued as housing prices spiked. But people worldwide suffered when this easy money disappeared.
It turns out that the United States isn’t the only nation where a banking crisis was preceded or accompanied by a real estate bubble. The authors found that over the last 100 years, this has happened in tandem with 21 major banking crises. No wonder they suggest the International Monetary Fund keep a close eye on property values.
#housing