Constructive gadfly
Published on January 28, 2009 By stevendedalus In Politics

 

The thousands of city dwellers who bought a home in Levittown and millions of others elsewhere was for the purpose of establishing a homestead in which to build a family, or enhance its lifestyle—surely, they were not thinking of making an investment, or furthest from their mind that the $8000 Levitt home in 1948 could be worth $7000 in 1949. Of course, the moneychangers of "irrational exuberance" in ensuing decades saw it differently. Promote the euphoria of suburbia to insure a rising housing price index and thus the miracle of the home becoming a bank. Even before Greenspan’s warning fell on deaf ears even his own and the telecommunications bubble burst, there was the S&L scandal in the ‘80s that should have served as a yellow light in the housing bubble. The so-called tickle down theory led to a cascade of indiscretion—not to mention the Madoff destruction—causing investments of phantom profits and eventual disaster.


Comments
on Jan 30, 2009

What exactly is your point?  You mention three or four different issues that have absolutely no relevance to each other and then just stop.  Please explain what your point is.

on Jan 30, 2009

What exactly is your point? You mention three or four different issues that have absolutely no relevance to each other and then just stop. Please explain what your point is.
You're kidding, right? There was a time of RATIONAL EXUBERANCE, the it became irrational. You do read the papers, don't you?.

on Jan 30, 2009

   I'm thrilled you're thrilled--continue on the path of euphoria--we need a lift these days.