Surely you can find a better example of bubble burst than: "In Los Angeles, tiny two bedroom houses in South Central are selling for $ 550,000".
Since you are one those who believes the housing boom is rock solid and the bubble is at no risk of bursting (no matter what happens to energy prices), the question needs to be asked, are you in any aspect of the real-estate trade - any portion what-so-ever?
These bargain houses are for sale in Chicago for only $ 175,000 each. The only problem is the neighborhood: Crimes like battery, burgery, telephone threats, assault and criminal damage abound . But perhaps bidders will show up to play bidding games. "Hurry, Hurry! Flip this house!"
Nothing drives up prices like lots of bidders and people get caught up in the bidding frenzy. Realtors in Australia Caught Using Dummy Bidder Tactics to artifically drive up prices. In the U.S., we have called such fraudulent tactics 'using shills.' Are the police and undercover investigators monitoring realtors for using these type of tactics in your state? Are you sure? BBC repoters caught realtors engaging in fraud on tape recently. ABC, NBC and CBS cannot be far behind.