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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: valueminded who wrote (34756)	8/2/2005 8:53:01 PM
From: regli	Read Replies (1) \| Respond to of 116555

I think that this is a bubble is awfully evident. Clearly your experience in the Atlanta and Nashville area are not representative. I am personally not familiar with these markets. However, I am familiar with the markets in Las Vegas, L.A. and the Bay Area. Here is the lead from the Economist on June 16, 2005 The worldwide rise in house prices is the biggest bubble in history. Prepare for the economic pain when it pops economist.com Here are a few charts from Contrary Investor of this month that illuminate the issue from a consumer standpoint quite nicely: Household RE as a % of disposable personal income home.earthlink.net Household RE as a % of GDP home.earthlink.net Household debt service ratio home.earthlink.net Here is the full article contraryinvestor.com Here is a nice blog showing the development of inflation adjusted house prices by metro area angrybear.blogspot.com And here is an excellent blog from CR covering the price rent ratios: calculatedrisk.blogspot.com If the data and insight depicted here does not convince, nothing will.