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Politics : Politics for Pros- moderated
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To: carranza2 who wrote (132676)8/15/2005 4:03:22 PM
From: Nadine Carroll  Read Replies (1) of 793881
 
It seems as a matter of intuition--and we know how far that will get you when considering macroeconomic issues, vbg--that the more inflated the bubble, the harder the fall

Housing bubbles have a kind of natural brake because people are actually using the houses and can just stay put in them (that is, unless there is a local economic collapse that is driving the housing prices down). When Boston's last housing bubble of the late 80s collapsed, prices dropped about 20% and took about 3 years to hit bottom; then slowly began to recover (now of course they have almost tripled since the bottom).
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