Look at the Housing Bubble!!

Ok, you have to look at this chart. This could be the most important chart for quite a while:


I'm always surprised at how many people have not seen this chart. (Click it to look at the full size chart.) This is an inflation adjusted view of US home prices going back to 1890. This is from the Case/Shiller work. If that's not a huge bubble then what is? Which way do you think this chart will go?

Here's a paper that Shiller delivered at the Jackson Hole Fed conference in Sept. 2007:

http://www.kc.frb.org/publicat/sympos/2007/PDF/2007.09.14.Shiller.pdf

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