Whether looking at 1637 or 2000, markets and financial bubbles always seem to find each other. As a surge in demand pushes prices up, the result resembles a bubble because it is full of air rather tha…
The Top of the Housing Market
During the past decade the housing market has undergone a popped bubble and a recovery that could be heading toward a Minsky Moment once again.…
Some Federal Reserve (Gallows) Humor
In the 2009 transcripts, Federal Reserve humor brings smiles and memories of the dire condition of finance, housing and the GDP.…
The Cupcake Bubble
Just like technology stocks in 2000 and housing in 2005, the cupcake bubble has burst. In 2004 or so, many of us started buying the most amazing cupcakes. 4 inches tall, topped with sprinkles or a coo…
Economic Ideas: The Blame Frames
Analyzing the housing bubble, we can all agree with some basic facts. If you look at the Case-Shiller Index, you would see that a typical home in a major US city was worth 26% less during April 2013 t…
The US Real Estate Bubble: Was This Time Different?
Our recent housing bubble has been called a unique phenomenon by economist Robert Shiller. With its national impact, a connection to houses rather than land, and a demand side surge fueled by “i…
Market Bubbles: "Pricing" Scrabble Letters
Just like technology stocks during the late 1990s or housing in 2006, the Scrabble letter Z might reflect a market bubble. The “price” of a Z is 10 points. However, one (Scrabble) research…
Irrational Expectations
Let’s say that you purchased the house in which you now live during 1997 for the average national price, $171,900. With housing prices steadily rising, by 2006, a neighbor’s house would ha…
Housing Prices in the U.S. and Abroad
We have a double dip in U.S. housing prices. But, is it happening everywhere? A Goldman Sachs research report from mid-May provided an OECD (Organization for Economic Cooperation and Development) summ…
Paying Less For a House
In an interesting Politico opinion column, journalist Michael Kinsley wonders why everyone seems to assume that climbing home prices are good. He points out that most people are happy when the prices …