Here is what Thornberg stated in his June 2005 report entitled :The California Report: Beware the Froth!
“Housing market bubbles don’t pop, this is true. They deflate. Prices tend to go flat and liquidity in the market drops.” p 1.8
That seems pretty similar to what he is allegedly stating now.
He also stated in the June 2005 report:
“A bubble is when an asset price becomes disassociated completely from the fundamental.” “There is no reason that a house should be worth 40% more today than it was two years ago. This is a bubble.” p. 1-8
Finally, this statement on the magnitude of what we’ve experienced in CA:
“In the late seventies, during the period of time that ushered in Prop 13 real housing prices in California increased by 55%, trough to peak. In the late eighties, during the bubble that most everyone remembers, prices increased about 46% trough to peak. And this time? So far prices have risen an incredible 80%, and we have not even hit a peak yet.” p.1-6
I have since read that he believes we have now seen the peak.
