Placed next to each other like the New York Times did in another example of their excellent graphics department, one can see how a soaring stock market drives a housing bubble. The drop we saw in 2006 was predicted and we still seem a little high so don't get that second mortgage to finance your child's education just yet.
Friday, October 18, 2013
Housing and Stock Prices over 120 years
The Nobel Prize in Economics went to three economists including Shiller, who theorized about housing price bubbles and P/E overpricing. I like the graphic that went along with the article and want to access it myself at times so I post it here for anyone's convenience.