Skip to comments.Housing boom and bust lesson still not sinking in
Posted on 12/02/2013 6:45:14 AM PST by SeekAndFind
Housing markets are booming again in parts of the U.S. and Britain and they havent stopped doing so in Canada for the better part of a generation.
What is most striking about the latest round, at least when you listen to those who ought to know, is how nothing much except the price has changed.
We were told a stern lesson in the months and years after the financial crisis, borne out of an over-inflated, over-leveraged U.S. housing market securitised up to the scalp by Wall Street and leaping ever higher up a steeper incline on a blind instinct never to look back.
But as most school teachers know, sometimes a lesson has to be repeated in order to be properly learned. And some students will still fail.
Scanning through the results of the latest Reuters surveys of property market analysts and economists would leave any reader with a memory stretching back before 2008 with a sense of déjà vu.
(Excerpt) Read more at blogs.reuters.com ...
Why should it? None of the previous housing boom and bust lessons have sunk in.
Most affordable empty homes are being grabbed by flippers, not occupants.