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

1. lvmreader said...

Good post, jb100.

Friday, May 4, 2007 04:04PM Report Comment
 

2. Wally said...

Sentiment drives the market, up then down.

Friday, May 4, 2007 04:40PM Report Comment
 

3. Davros said...

I love this. If ever there was a true expert in all this, Robert Schiller is is.

Friday, May 4, 2007 07:41PM Report Comment
 

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