Tuesday, June 07, 2005

Real Estate Investing: Betting Against the House: "This is the strange reality of financial bubbles. When one really gets going, the people who—correctly—warn that it won't go on can be wrong year after year after year. Meanwhile, the overenthusiastic, ill-informed sorts who cast such worries to the wind can get seriously rich. Conventional economic theory holds that market prices are set by prudent and rational buyers and sellers. When all the profits flow to the imprudent and the irrational, though, they set the prices—and economic laws temporarily cease to apply." —Fortune