dean baker vs. the dot com and the tulip bubbles

[Charles Brown <cbrown@xxxxxxxxxxxxxxxxx>]

by Perelman, Michael

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Mr. Hassett of the conservative American Enterprise Institute thinks
housing prices will be pretty much O.K. He acknowledges there might be
some bubble dynamics at play in some regions. But he argues that for the
most part people are paying more for homes because their incomes are
higher and interest rates are lower, reducing the cost to own a home.

^^^^^

CB: Sounds like he is saying people are paying more for homes because the
cost of them is less.

Isn't the market theory of prices supposed to be determined by  supply and
demand ? Yet supply of houses is not less, and demand is not more, so why
higher prices , by that theory ?