Housing Bubble Week Epilogue: Not All Bubbles Are Created Equal - Vernon Smith
The Joe Walker Podcast
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The Psychology of Housing Bubbles
There's a fascinating point in your book with Stephen where you talk about how markets for long lived durables might actually facilitate a different psychology which is in turn conducive to the formation of bubbles. How do markets for things like housing differ from those conditions and produce something different to the wisdom of crowds? Well there's a lot of interdependence there because people are all looking at the same rising prices they've seen the capital gains that they're getting and everything. And so that puts everybody into a waiting game and how long you see should I wait and let this thing run before I sell. When people can borrow when they can trade on credit it very much exacerbates them. People that are just
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