Interesting perspective from Michael Kinsley

“Perusing the real estate ads like pornography
and imagining what our houses are worth is the great American pastime…. The
19th-century American Henry George explained how rising real estate values harm
the economy by operating as a tax on both labor and capital…. Money for
capital makes people save more…. Money for land just makes the owner richer.
There are all sorts of complications and qualifications, but the basic point is
a good one.”

…All this talk of a
bubble leads one to believe that a self-fulfilling prophesy may be around the
corner/bend …

“Perusing the real estate ads like
pornography and imagining what our houses are worth is the great American
pastime. But a real estate crash, if it came, would have some advantages. The
19th-century American Henry George explained how rising real estate values harm
the economy by operating as a tax on both labor and capital. Money for labor
makes people work harder. Money for capital makes people save more. Both make
the country richer. Money for land just makes the owner richer. There are all
sorts of complications and qualifications, but the basic point is a good
one.”

Huh. All this talk of a bubble
leads one to believe that a self-fulfilling prophesy may be around the
corner/bend … story is here.
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