Friday, August 19, 2005

Real Estate's Wall of Worry

Barry L. Ritholtz recently wrote a piece on Housing Bubble..

The way information moved in earlier times was lot slower than what today is. The mere fact that you are able to pick up on an obscure story of Bubble T-Shirt means that information flows faster and hence slows down the reaction time. The new media has also brought down the "Experts" from their Castle closer to the "Commoner" hence dissipating the value of their analysis faster and to wider audience.

It also created pseudo and obscure experts to the forefront which might explain the amount of "Housing Noise"

I think rational thinking proves that there is Housing Bubble only questions are about Why it is going up? How long this can last? I don't think we will be able to answer that till we are way past the bubble. Then we might gather together and certainly analyze the posts/blogs to see who and how many were right (Another powerful feature of this new media)