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Showing posts with label bubble. Show all posts
Showing posts with label bubble. Show all posts

Tuesday, December 11, 2007

The housing bubble reminds me of An Inconvenient Truth

Basically, if housing prices get too high, people shouldn't be buying houses because renting will be cheaper. The linked chart shows the ratio of housing prices to rental prices, a measure of the imbalance in the residential market. The tail end we're on reminds me of the global carbon increase chart that Al Gore required a hydraulic lift to illustrate. This bubble hasn't begun to burst.