A supreme mistake

Count me among those disgusted with the Supreme Court’s ruling against Susette Kelo, which
asserted the right of the government to seize her home in order to divert the property to what
it judged to be a use of higher economic value.

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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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