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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: orkrious who wrote (27287)2/26/2005 10:12:02 AM
From: Wyätt Gwyön  Read Replies (1) of 110194
 
Grantham did a historical study of something like 40 asset bubbles and found that they always give back ALL the gains. the money question, of course, is from what point.

another possibility, in a heavily rigged market like real estate where the bubble is actively supported by the government, is that they may move the goal posts, so that the nominal gains remain, even if they are backed out in real terms (i.e., dollar implosion swallows the real value of home price gains hook, line and sinker).
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