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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: Doughboy who wrote (14788)11/3/2003 7:06:31 AM
From: Wyätt GwyönRead Replies (1) of 306849
 
note that while everyone has been wringing their hands about a bubble the last two years, new home prices are still steadily climbing and selling at record volumes

this is hardly proof that there is no housing bubble. in fact, it is to be expected. it is exactly what happened with the Nasdaq--people were calling it terribly overvalued in 1997, and in 1998, it seemed the tech stocks were going to get their just desserts...until Greenspan opened the spigots in the fall. then the Nasdaq doubled again from what were already the most overpriced levels in history. this sent all the bears home. it is in the nature of bubbles to go farther than most people think they can. but remember, the flipside also goes farther than most would think.
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