[lbo-talk] Re: House prices

[Jordan Hayes]

> If you look at the house price booms in the world, they
> match up absolutely 1:1 with the deregulated financial
> systems.  I don't think they match up with any other
> supply/demand characteristics.

I have seen other cases where this "demand" part of the equation was
really "would like to buy a house, especially if it means moving out of
the broken-down city" ... in the area where I grew up (Buffalo, NY),
there was big "demand" for housing even though the county-wide
population was pretty stable over 20 years: but the new houses were in
the suburbs, and so even though moving from one to the other doesn't do
anything to the "supply" (now there's an empty house that they left),
the one in the city didn't get sold, it got abandoned.