Tuesday, August 09, 2005

That Hissing Sound: "Bubbles end when people stop believing that big capital gains are a sure thing. That's what happened in San Diego at the end of its last housing bubble: after a rapid rise, house prices peaked in 1990. Soon there was a glut of houses on the market, and prices began falling. By 1996, they had declined about 25 percent after adjusting for inflation. And that's what's happening in San Diego right now, after a rise in house prices that dwarfs the boom of the 1980's." —The New York Times