The Madness of American Real Estate
Friday, September 30th, 2005Nothing says “American Madness” quite like the current state of the housing market. It’s amazing how our collective denial has allowed us to watch almost the exact same situation replay itself over and over, and yet still convince ourselves that everything’s going to be fine.
When people speak of the housing bubble, the most frequent argument I hear is “well, this bubble can’t pop, because if there’s a correction in the market, people just won’t sell for a while.”
If everyone in the market simply owned their own home, there would be some truth to that, aside from those that sell out of fear once the market turns downward and those forced by circumstance to move.
Let’s leave the argument that once the market turns, so will the economy, meaning people won’t be able to pay those high mortgages, for another day.
