PS Besides being ad hominem, I just don’t get the idea that home owners would somehow rationalize away a bubble, if there was one.
As a home owner, from a purely self-interested standpoint, a bubble would be fantastic: I could sell my house, take the profit, wait for the bubble to burst, and buy back in at a lower valuation.
Why would I be in denial about that?
Then again, I suppose many home owners were in denial during the actual bubble. So that kind of shoots own my logic in the above paragraphs. But, I think the difference there wasn’t that they were homeowners, but that they thought RE investing would make them rich.
In my case I see my house as a consumer good, not a path to riches. So if it gets bubbly, great… I’ll take my equity out and wait. If not, then I guess that’s fine too. (Though not as good).
I guess the point is that my status as a home owner doesn’t make me disinclined to see bubbles — if anything, it’s the opposite.
