Logo Background RSS

Advertisement

2013 Real Estate Bubble Now Bigger Than 2007!

  • Written by Syndicated Publisher No Comments Comments
    October 31, 2013

    It’s painfully obvious that real estate valuations are once again at asset-bubble extremes.

    Correspondent Mark G. submitted a chart of the Wilshire REIT (real estate investment trusts) index that sums up the current real estate market in one image: it’s painfully obvious that real estate valuations are once again at asset-bubble extremes, one that’s even bigger than the last RE bubble that popped in 2008 with devastating consequences to the global economy.

    Defenders of current real estate valuations can draw upon an array of justifications, but they boil down to the same one used to justify valuations in every asset bubble: this time it’s different.

    Is there anything in this chart that suggests this belief might be misplaced, for example, that credit/asset bubbles burst with a rough time/amplitude symmetry?

    Images: Flickr (licence attribution)

    About The Author

    Charles Hugh Smith writes the Of Two Minds blog (www.oftwominds.com/blog.html) which covers an eclectic range of timely topics: finance, housing, Asia, energy, longterm trends, social issues, health/diet/fitness and sustainability. From its humble beginnings in May 2005, Of Two Minds now attracts some 200,000 visits a month. Charles also contributes to AOL’s Daily Finance site (www.dailyfinance.com) and has written eight books, most recently “Survival+: Structuring Prosperity for Yourself and the Nation” (2009) which is available in a free version on his blog.

Advertisement

Play All Replay Playlist Replay Track Shuffle Playlist Hide picture