Friday, May 04, 2007
The Short View: Housing bubble
ft.com: Financial Times
As a psychologist I liked this one - it talks of irrationality in the context of the housing market and peoples failure to take into account salient facts like the true costs of house ownership during their decision making process. Apparently we are driven by thinking of those people who have made huge gains in property but ignore the costs of these gains - used to be called greed I think. US prices are falling and apparently we are more than twice as overpriced as the US on comparative measures etc etc.
Posted by jb100 @ 07:21 AM (125 views) Add Comment
3 Comments
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1. lvmreader said...
Good post, jb100.
2. Wally said...
Sentiment drives the market, up then down.
3. Davros said...
I love this. If ever there was a true expert in all this, Robert Schiller is is.