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Reply to "There is no housing bubble in the DC area so get over it"
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[quote=Anonymous]"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" +1[/quote]
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