[Homestead] I found a house
Don Bowen
don.bowen at earthlink.net
Wed Mar 12 18:58:50 EDT 2008
At 3/6/2008, you wrote:
>Do the housing bubbles run on 20 or 30 years cycles?
There are several things that cause asset price inflation. Housing is just one area where we are closest to the action but it is just one area. Some consider that the current oil price increases are just another asset price inflation and it will deflate soon.
Asset price inflate is almost predictable. First comes the mania, everyone needs in on the asset before the prices increase. Some sort of shock comes along to cause a pause then comes the panic when holders of the asset realize that the income from the asset cannot pay the interest. Then comes the panic as everyone tries to get out from under the asset with whatever they can get. Put tulips, houses, stocks, etc in as the assets and you can see the trends.
Don Bowen Awl Knotted Up KI6DIU
http://www.braingarage.com
My travel journal
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