I’ve been following the real estate bubble, and generally the psychology of bubbles, for some time now. The warning signs are becoming more easy to identify considering that I’m a “buy on the dips” trader and I’ve witnessed five large bubbles (tech, oil, home equity lines of credit, real estate, and treasuries) in the last 12 years alone.
I write about investment bubbles rather frequently at my blog (Steadfast Finances – which someone already generously posted a link to the Faber CNBC documentary), but I’m particularly fond of the real estate bubble because everyone got to take part. New laws were passed, mortgage rates held artificially low encouraging citizens to take on more debt, and the regulators who saw the looming problems were chastised or ran out of town (Washington DC) if they caused too much trouble.
So if there is anything I can add to the discussion, or give anyone some solid resources to investigate further, I’d be happy to help.
