Posted on 02/03/2005 8:40:47 AM PST by Paul Ross
Really? Is it a bubble everywhere or only in certain areas?
btw War and recession are still not over and we keep piling on more debt.. if thats not reason to panic I dont know what is.
When debt keeps rising, tangible assets and financial assets decline and National Income and Employee Compensation start to decline, then you can panic. Until then, chill, drink a beer. The sky has not/is not falling.
Real estate rose from $12.6427 trillion in 2000 to $18.6455 trillion in 2004. That's only a 47% increase, a 10.2% annual increase for 4 years.
The Nasdaq was a bubble! In the 4 years leading up to March 2001, the Nasdaq went from about 1120 to 5132. That's a 358% increase, a 46.3% annual increase for 4 years.
All the liberals with money are betting against their own team. Yeah, I'm charmed.
Liberals are trying to push us off a cliff -- and they're getting shrill about it not happening fast enough. Sick mucks.
Everyone knows that the stock market always outperforms real estate in the long run yet in the last few years the real estate has emerged as a speculative investment which it usually is not. People dont realize that mortgage is a huge margin loan. There is an assumption that those underlying values are relatively stable but if they become volatile all bets are off.
Yes nasdaq of course was a bubble and real estate is a big bubble in some parts but still a small bubble in others. All bubbles dont grow at 46% a year. some grow at 12% too.
The amount of debt invested in the nasdaq was paltry compared to the amount of debt invested in mortgages.. real estate has become the one all imp sector in the economy and its gotten way too speculative. This is my last post. Thanks for the discussion.
Keep looking for that dark cloud amongst all the good news.
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