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Tuesday, June 23, 2009 12:00 AM

Does the housing sector have a pulse?

Existing home sales rise slightly, compared to a month ago. But prices continue to fall
Andrew Leonard

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  • Tuesday, June 23, 2009 08:06 AM

    Does the housing sector have a pulse?

    In a word, no. Bubbles tend to be symmetrical which is to say that they take as long to deflate on the down side as they did to inflate on the up side. And bubbles also tend to overshoot on the downside. This is a pretty well understood phenomenon that is repeated again and again and again with many examples available for study.

    The best single online resource for getting a handle on where we are is Chris Martenson's Crash Course. The segment on bubbles is a great place to start and is in fact that segment that noted financial author and DNC Treasurer Andrew Tobias linked to which was how I was introduced to The Crash Course. Cut and paste the link or click my sig.

    http://www.chrismartenson.com/crashcourse/chapter-15-bubbles

    —Roman Berry Read Roman Berry's other letters

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