On Apr 11, 2008, at 12:36 PM, David B. Shemano wrote:
I stand by my main point -- because we have numerous government policies that favor real estate investment and home ownership, strange things are going to occasionally occur. Compare to the relatively unsubsidized market -- where is the bubble in automobiles and automobile loans?
Autos are a rapidly depreciating asset - houses are supposed to appreciate, though as Shiller has shown, they don't as much as people think. In any case, there was a furious boom in vehicle purchases from the mid-90s through the mid-00s that's only now being undone. There was no recession in auto demand in 2001, and sales were way above their long-term trend for years. And a lot of people were trading in the old car/SUV before the loan was paid off, so they simply rolled over the old loan when they took out a new one. That's a bubble of sorts.
And the gov has subsidized housing for decades. Why was there only a bubble between 1995-2005?
Doug _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
