mrnate

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  • Surviving The Housing Bust: Economic Models vs. Reality
    JURP, funny thing is that real prices on all goods fell between 1929 and 1940. It's called deflation, which is quite a contrast to the current situation. So, yes, you would expect real estate prices to fall because the price of everything else was falling. The author of this article actually neglects to mention that almost every economist of which I am aware is accepting of the idea of "sticky" prices, which the author cites as "They want to feel good. And if feeling good means holding on to losers, then this is what they'll do, regardless of what big-brained economists may say."
    Yeah, I think the big-brained economists already figured that one out quite a while back.
    Sep 24 17:43 pm |Rating: 0 0 |Link to Comment |View article

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