Friday, May 27, 2005

Bubbles

I've been noticing the national news attention to the so-called real estate "bubble". This column by Paul Krugman, economist and columnist for the New York Times tackles the issue head-on and gives an economists judgement. On the one hand this, on the other hand that.

Here's the money quote: In parts of the country there's a speculative fever among people who shouldn't be speculators that seems all too familiar from past bubbles - the shoeshine boys with stock tips in the 1920's, the beer-and-pizza joints showing CNBC, not ESPN, on their TV sets in the 1990's.

This article brings to mind the Florida land rush in the 30's (and the 00's).

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