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[Clansgian AT wmconnect.com]

Don forwards:

> For those who do not believe there is a housing bubble, here is some 
> support.\
> 

Facts, yes.  But the conclusion?  The author sets up an implausible strawman 
and then knocks it down, that is, housing value can't drop to zero or even 
drop 80% as stocks did.  That's right, it can't.  What has that to do with 
the 
bubble?   A drop in value of 25% would wipe out most speculative buyers.

The author points out that less than 1% of real estate is resold in less than 
one year.  Seeing as how one has to occupy a house for TWO years in order to 
avoid paying capital gains on the appreciation, you reckon there's some 
motivation to hold onto real estate for more than a year?

Some facts there, but nothing to argue against the notion of a housing bubble.

I might add that in '98 and '99 there were articles just like this one 
showing how it would be IMPOSSIBLE for tech stocks to drop by very much.  But 
they 
did.

James