the Housing Bubble- you know you are there when the janitor is investing in speculative condos in Florida. And yes, there have been real estate buybbles before. Just remember houston, Oklahoma and Alaska in 1986. Today a report that something like 20% of all real estate is being bought by invfestors, read speculators. THe post below is one letter of many in response to an article:
The Great Real Estate Bubble
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The main reason investors should worry about real estate bubbles is this: most experts say that real estate bubbles are simply impossible

On a site called:
http://www.maxfunds.com/archives/000397.php

: "Other interesting articles related to this topic are at:
It's about the World real estate bubble, but it applies here.
http://www.economist.com/displayStory.cfm?Story_id=1794899
Britain's housing boom threatened by record bankruptcies
http://uk.news.yahoo.com/040408/325/eqm4b.html
How healthy is the US banking system?
http://www.brookesnews.com/040504usams.html
Housing Bubble
http://www.washingtonmonthly.com/features/2004/0404.wallace-wells.html
Housing Bubble
http://www.virginiabusiness.com/magazine/yr2004/feb04/ideas.shtml
Housing Bubble
http://www.baconsrebellion.com/Issues03/11-17/Housing_bubble.htm
Problems with Fannie Mae and Freddie Mac
http://www.larouchepub.com/other/2002/2924fannie_mae.html
Housing Bubble
http://www.msnbc.msn.com/id/4724213/
Housing Bubble
http://www.greekshares.com/real_estate.asp
Watch for news reports of slowing real estate sales that should begin in the 3rd quarter 2004 through the 1st quarter of 2005 immediately following any increase in rates by the Federal Reserve. Two increases by consecutive meetings of the Federal Reserve will officially launch the begining of a real estate crash in California and more so in San Diego, if not for the actual impact of the increase then for the psychology of back to back increases.
Remember to ask yourself this question about those who say there's no real estate bubble: What's their bias? The only people who are denying the obvious are those who stand to profit from it, real estate agents, lenders, title companies, and anybody who's so leveraged that any small decline in property value will destroy them.
Posted by: banker at April 4, 2005 02:59 PM "