It is very interesting to note the parallels between these two housing booms that eventually led to a crash - the weird and funny thing is that one happened in 1925 and the other in 2008.
It boils down to human behavior and that has and will remain a constant.
1 - Availability of easy credit
2 - Low or no down payment on the property
3 - Buying the house not to live but to sell it to another buyer in a short span of time without the intention of living in it - This is also called the GREATER FOOL Theory
4 - In the midst of the bubble - sudden emergence of traffic jams in the city.
5 - The concept that one can get rich buy doing little or no work
It boils down to human behavior and that has and will remain a constant.
1 - Availability of easy credit
2 - Low or no down payment on the property
3 - Buying the house not to live but to sell it to another buyer in a short span of time without the intention of living in it - This is also called the GREATER FOOL Theory
4 - In the midst of the bubble - sudden emergence of traffic jams in the city.
5 - The concept that one can get rich buy doing little or no work
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