The localized real estate bubble
An interesting quote from Barron’s noted on the excellent maoxian site:
That is precisely the nature of a bubble. It is concentrated in a relatively narrow sector. The 2000 bubble in the stock market was concentrated in TMT [telecom, media and technology]. There wasn’t a bubble in U.S. Steel or copper stocks or oil. The apologists for the housing-market bubble in the U.S. always point out that it is concentrated in a few markets, but that has always been the case. I don’t buy that if the bubble in California, Florida and Texas deflates, it won’t have an impact on the economy…
Marc Faber