Bubble or no bubble - for many, that is the dominating question of their financial existence. I have been expecting the bubble to burst every year since 2000 when I purchased my second home, and I can barely express my amazement about how this market managed to put the inevitable off for so long. Finally, common sense seems to return into people’s purchasing decisions.
But that’s not what I want to talk about here, because this is an argument I could not win. Too many people who make a living off of selling real estate at inflated prices have argued that there is no bubble. Thinking about what I paid for my house and what it will actually be worth a few years from now gives me unpleasant feelings, though. Instead, what I want to talk about is an article by Russell Shorto
in the New York Times Magazine from 3.5.2006 (the same article also appeared in the Herald Tribune on 3/3).