Re:What about the real estate bubble? (Score 0)

The real estate bubble is summarized from the same source, the Economist dated June 15th, 2005:

http://www.economist.com/displaystory.cfm?story_id =S'(X%2C%2BRA%3B!%200!4%0A&CFID=61581345&CFTOKEN=3 cc25fb-873315f9-96db-421b-9995-d09f0c2d2a5b&tranMo de=none

As it is premium service, I summarize the features of the global real estate bubble:

(1) high housing prices to rents, which is like a P/E ratio for real estate

(2) a majority of sales going to "investors," or short-term speculators, rather than long-term residents, i.e. buy-n-holders,

(3) and heavy incidence of flipping on new homes.

To which I add one other indicator:

(4) Lots and lots of people talking about a bubble.

The parallels to stock bubbles and hot IPO markets are rich.