Author Archives: econbrowser

What is a bubble and is this one now?

Many of those discussing the possibility of a housing market bubble seem to be taking
Justice Potter Stewart’s position on pornography– they haven’t defined a bubble, but they think
they know it when they see it. Maybe it’s useful to take a look at a formal characterization of
the concept of a speculative bubble, and see how well it seems to fit the facts of the current
situation.

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For the love of tulips

Many folks appear to be convinced that the current housing situation is akin to any of a
number of other famous financial bubbles of history. Trouble is, those famous bubbles weren’t
very much like what most people seem to assume.

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Babble about a housing bubble

There’s been much discussion recently of whether the U.S. is experiencing a speculative bubble in house prices. Like previous historical bubble sightings, this one only seems to pop up in situations where the fundamentals on their own might justify significant price increases.

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