3min chapter

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Housing Bubble Week: A Philosophy Of Bubbles - Timo Henckel

The Joe Walker Podcast

CHAPTER

The Psychology of Bubbles

When we start talking about bubbles, then we have a notion that the price that's observed on the market is in some ways divorced or departing from this benchmark price. But of course, this is where it becomes very fuzzy and very difficult and why there's so much disagreement. It comes down mostly to psychology, with the underlying force normally for the existence of a bubble being speculative behavior by home buyers.

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