[PEN-L:29488] Re: PK on current events

[Michael Perelman <michael@xxxxxxxxxxxxxxxxx>]

I was in the local bike shop yesterday.  The owner, a fine progressive,
was telling me about a conversation he had with some local stock brokers
who were all taking their money out of the market and putting it into real
estate.

On Fri, Aug 16, 2002 at 08:41:25AM -0700, Devine, James wrote:
> The most interesting thing about Paul Krugman's NY Times column
> (http://www.nytimes.com/2002/08/16/opinion/16KRUG.html?tntemail0) is that he
> cites Dean Baker's work approvingly:> More and more people are using the
> B-word about the housing market. A recent analysis by Dean Baker, of the
> Center for Economic Policy Research, makes a particularly compelling case
> for a housing bubble. House prices have run well ahead of rents, suggesting
> that people are now buying houses for speculation rather than merely for
> shelter. And the explanations one hears for those high prices sound more and
> more like the rationalizations one heard for Nasdaq 5,000.
>
> >If we do have a housing bubble, and it bursts, we'll be looking a lot too
> Japanese for comfort.<
>
> Jim Devine jdevine@xxxxxxx &  http://bellarmine.lmu.edu/~jdevine
>

--
Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael@xxxxxxxxxxxxxxxxx