[lbo-talk] reflections on the current crisis

Doug Henwood dhenwood at panix.com
Mon Aug 20 19:51:08 PDT 2007


On Aug 20, 2007, at 10:39 PM, Robert Wrubel wrote:


> Super article, Doug! One question: you attribute the
> housing bubble to a "mania" for home ownership. That
> would be the "demand" factor. Wasn't there also a
> "supply" factor, in an excess of money that needed to
> find new outlets for investment?

Thanks.

There is - or was - an excess of capital lusting for returns. But that's true a lot of the time - so why did housing take off in 1995 (or 2002)? Spillover from stocks, or refuge from stocks, maybe.

Doug



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