Tag Archives: echo bubble

Here We Go Again: Our Double-Bubble Economy

Well, folks, here we go again: we have a double-bubble economy in housing and stocks, and a third difficult-to-chart bubble in greed, euphoria and credulity. Feast your eyes on Housing Bubble #2, a.k.a. the Echo Bubble: Here’s the S&P 500 stock … Continue reading

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The Echo Bubble in Housing Is About to Pop

The Federal Reserve-induced Echo Housing Bubble is finally starting to roll over, and the bubble’s pop won’t be pretty. Why is the bubble finally popping now? All the factors that inflated the Echo Housing bubble are running dry. These include: … Continue reading

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Is the Echo Housing Bubble About to Burst?

Speculative bubbles that burst are often followed by an echo bubble, as many participants continue to believe that the crash was only a temporary setback. The U.S. housing market is experiencing a classic echo bubble. Exhibit A is the Case-Shiller … Continue reading

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When the Current Housing Bubble Finally Bursts

Bubbles are followed by echo-bubbles, and the bursting of the second bubble ends the speculative cycle. If we have learned anything in the past 20 years of massive asset bubbles and equally massive declines when the bubbles finally pop, it’s … Continue reading

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Should I Buy a House in 2015?

No one can answer that question for anyone else, but it seems prudent to ask the question in the context of an Echo Bubble in valuations that appears to be deflating. Readers often ask me if now is a good … Continue reading

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