The Problem With Housing Bubbles

We tend to buy houses with a lot of other people's money, not our own. So we get recurrent house bubbles. We get recurrent stock market bubbles. And the problem with housing bubbles is that they're largely... Adam Smith would put it, he wasn't talking about housing. He was talking about the South Sea stock bubble. The difference between a market for lettuce and a market for houses is that you go to the lettuce market and you buy it to eat it. You don't buy it to resell it. Same thing with haircuts and hamburgers and hotel rooms.