Tag Archives: housing bubble

Charles P. Kindleberger on Economic Bubbles and US Asset Bubble of the 2000s

Economic historian Charles P. Kindleberger writes in his “Manias, Panics, and Crashes”(C.P.Kindleberger, 1978 edition, page 17): “As firms and households see others making profits from speculative purchases and resales, they tend to follow. When the number of firms and households … Continue reading

Posted in economic theory, Economics | Tagged , , , , , , | Leave a comment

The Phenomenon of Price Threshold in US Housing Bubble of the 2000s

So there was a drastic change in the speculation volume ratio to all sales of homes (a threshold) in the course of US housing bubble of the 2000s (see post  “Critical Mass of Speculation Triggers Asset bubbles”). I have hypothesized that crossing … Continue reading

Posted in economic theory, Economics | Tagged , , , , , , , , , , | Leave a comment

One Way to Define If There Is a Housing Bubble

In this post I focus on the assumption of a critical point or a threshold on the way to a housing bubble, made before. I believe that at some point the critical mass (volume) of flipping operations emerges, producing explosion-type … Continue reading

Posted in economic theory, Economics | Tagged , , , , , , , | Leave a comment

Can We Discern the Naissance of a New Housing Bubble?

In my post  “Asset  Bubble Microeconomics: a Peculiar Demand and Supply Diagram” I’ve argued that in a housing bubble the demand curve is upward sloping, positioning itself below the supply curve at the boom phase and shifting to the position above … Continue reading

Posted in economic theory, Economics | Tagged , , , , , , , , , , , | Leave a comment