In 2003, I was driving up and down San Diego, Chula Vista, Temecula several times looking for the perfect first home. Prices were going up everywhere and I saw schools of people walking the model houses, houses which looked so nice but I cann’t afford with both income. So I did some research to see if anyone talking about a possible bubble. There was almost no one talking about the bubble at that time except 1. Dean Baker, economist. and 2. the history of buble in 1989.
You will be suprised that almost no one, newspaper, magazines or media was talking anything about the bubble. Only recently that they talk about it.
Then I questioned myself as to how a possible crash would happen beside job market, recession….and how come the banks were giving out big loans so easily. My observation of how banks rebundle loans as investment tool to sell to wallstreet explained a lot and made me certain that the bubble won’t last forever, just wait. That was a long wait.
However, now, I am pretty confused again how high inflation will factor into my decision of 2009, 2010, 2011 versus 2003…and if I made a good decision or not consider how inflation and other socialist government decisions will affect the market…
