Are
we looking at a housing bubble?
For a great example,
look at the housing bubble during 2004 - 2007.
Not exact matches
Director Adam McKay is best known for his outrageous comedy work with Will Ferrell, but here he takes a sobering
look at when the
housing bubble burst.
Let's
look at large valuations over the last 30 years; the tech job
bubble with crazy bonuses, the tech startup valuation
bubble, the
housing bubble.
Richard: Great insight as always, and last time we talked about the commercial real estate
bubble and we thought today we'd do a special focus on the millennial generation and how financial repression through repressed interest rates and quantitative easing has resulted in asset
bubbles that ultimately have affected the millennial generation in terms of their values, how they
look at the economy and life and the way they're conducting themselves in the economy: what they're facing in terms of the
housing market and the job situation.
Last time we talked about the commercial real estate
bubble and we thought today we'd do a special focus on the millennial generation and how financial repression through repressed interest rates and quantitative easing has resulted in asset
bubbles that ultimately have affected the millennial generation in terms of their values, how they
look at the economy and life and the way they're conducting themselves in the economy: what they're facing in terms of the
housing market and the job situation.
To illustrate this, just take a
look at how our economy has changed since financial institutions inflated asset prices in the
housing market until the
bubble burst in 2007.
That means, people whose bad credit is a result of catastrophic events related to unforeseen circumstances such as a job layoff or the
housing bubble bust are
looked at far more favorably than those whose bad credit is a result of irresponsible spending over a long term and too much current debt.
Looking at the chart of the S&P Corelogic Case - Shiller Home Price Indices, many are wondering if we're in another
housing bubble.
A tiny bit like you perhaps, I
look at history (the Great Depression; Japan since the early 1990s or so; the 1970s; the burst
housing bubble of the late 80s in some parts of the country; banks having problems in the early 90s) and think the U.S. economy, and increasingly the world as a whole, is able to correct.
If you thought home prices were high when the
housing market
bubble burst in 2007, take a
look at how they've grown since the market recovered.
The
housing bubble was easy to see with long - term perception — where one does stress tests, and
looks at the long term likelihood of loss, rather than risk measures that derive from short - term price changes.
«We all live in our own personal
bubble, and you
look at these
houses and think, «That
looks pretty bad,»» she says.
This report takes a deeper
look at the
housing market in Canada,
looking at each provinces resale
housing markets, asking pertinent questions around topics such as foreign investors and the so called «
housing bubble», and
looking at the need for government intervention.
At least one big bank economist is willing to come out and say it: The Toronto real estate market
looks like a
housing bubble.