Wednesday, December 08, 2010
CNBC housing debate
In the video, Susan Wachter is misleading. Price-to-rent ratios are out of line, not just by 1890 levels, but also by 1970-1999 levels—basically all of the pre-bubble period. From 2007-2008, prices were falling rapidly until the Federal government stepped in to prop them up.
Hat tip to an anonymous Bubble Meter commenter.
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