This is a totally awesome chart...and it scares me!
August 30, 2006
Thanks to Dustin at RCG for pointing this out. Click on the picture. When you have lifted yourself off the floor, ask yourself this question: What the $&^%@# is going on here? The answer: I don't know. But, it appears a big correction is coming to a real estate market near you if history tells us anything about the future.There is more to this story to put it into 21st century context. I just need to find it.
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made the following comment on August 31, 2006 7:38 PM
Good question. I guess we need to read his book...Irrational Exuberance. However, the spike is unprecedented. Almost looks like my inventory charts!
Wow... Talk about housing inflation in the last 6 years. But lets also not forget, the US Money Supply went from $7.1/trillion in 2000 to $10.3/trillion in 2006. The Fed is to blame for allowing $3.2/trillion dollars in loans to create new money. Without the increase in the money supply, the dollars wouldn't exist for these home prices to sky rocket. I wonder if the economist from Yale factored in Money Supply Inflation, not just CPI Inflation.
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