Friday, May 27, 2005

Watch that bubble burst

Housing prices seem to be rising indefinitely. It seems like there is no better time to be a home owner. However, Paul Krugman at the N.Y. Times is arguing that the housing market is nothing but a speculative bubble that will soon burst. He references a few sources who predicted the Dot-Com bubble burst, who are now predicting that the housing mark bubble will also soon burst. This is terrible news because the largest asset for most people in the U.S. is their house, and alot of people are going to lose alot of money if the housing market suddenly falls. Still, at least their is hope that those of us who don't own a home may be able to afford one some day.