Reply to There is no housing bubble in the DC area so get over it

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[quote=Anonymous][quote=Anonymous][b]Generally the best sign of a bubble is when folks start denying that there is one...[/b]

Really what prompted this guy to post this?  Even if there is a bubble, there's no value to that knowledge unless you know when it will pop...

Yes, it will not be the same kind of bubble.  But a bubble fueled by Federal MBS buying and government mortgage guarantees, and low-down payment FHA loans (has the FHA been bailed out yet? or has the Fed managed to pump enough money supply to avoid it? http://www.nytimes.com/2012/11/17/business/audit-shows-housing-agency-facing-shortfall.html), is still a bubble. But yes different than bubble from 'creative' bank financing.

Also, to some degree, this *nationwide* bubble is fueled by an inventory pinch, which results from hedge funds and private equity scooping up property and pushing inventory down, ie supply-side bubble versus our earlier demand side bubble. They are looking for yield b/c the Fed has driven rates so low.
http://online.wsj.com/article/SB10001424127887324034804578346800317118568.html

Or maybe huge swaths of the DC region are filled with lawyers and lobbyists all pulling in 500k household income, and they are making thousands more of such households every year.  I guess that is possible too..[/quote]

Naw, I disagree. Well, not totally. I wouldn't have started this thread, but I'll tell someone who is convinced there's a bubble that there are many many facts that fly in the face of that declaration. But at the end of the day it doesn't really matter, really. We all have to live somewhere.[/quote]

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