Macro perspectives on the Capital Markets, Economy, Geopolitics, Technology and Digital Media

Visit Big Picture

The Housing Abyss

Posted on July 01, 2008

Housing optimists have systematically misjudged themarket. Some became convinced that the huge runup was justified byfundamentals such as population growth, rising incomes, and landscarcity. And because sharp national housing price declines are so rarein U.S. history, analysts assumed that prices would, at worst, flattenout for a few years.What they forgot was that markets can overshoot on the downside just as easily as on the upside, with both financial and psychological forces feeding the decline . . . So notes an interesting cover story in BusinessWeek (June 26) titled The Housing Abyss. ...

Original article link


data , economy , federal reserve , foreclosures , housing , housing crash , inflation , system