A new view on house prices and their fall

businessinsider.com/the-hous … rds-2009-2

interesting chart, and I have to agree with the analysis. Thoughts?

Wow. I knew the bubble was bad, but not THAT bad. I’m so glad my wife and I bought our house in 1999, right when this insanity was starting! I read the longer article that is linked from that chart. A very interesting read to say the least.

I especially enjoyed this quote: “When half of the people get the idea that they do not have to work because the other half is going to take care of them, and when the other half gets the idea that it does no good to work because somebody else is going to get what they work for, that my dear friend, is about the end of any nation.”

Yes indeed. I don’t think anyone has really put the silliness of the last bubble into perspective, and you can’t really do it without a chart. Personally I’m really glad I didn’t copy what a lot of my friends did and get into ‘buy-to-let’ mortgages that are no doubt a disaster now. I’ve never been comfortable with the idea of lording it over someone as their landlord, so I never did it.

I wonder how state housing policies distort the housing markets?

Beware of the repressed zero! I am always caught out the news’s terrifing stock market graphs. AGHH! The FTSE is down to zero!, Oh wait its down from 4400 to 4000.