Courtesy of Mish.
Fed Chairs Ben Bernanke and Janet Yellen re-blew the Alan Greenspan initiated housing bubble.
However, the trend towards higher and higher home prices started well before that dynamic trio made a mess of everything.
The following picture shows the true origin of escalating home prices.
Median Home Prices 1963-Present
To be fair, homes have gotten larger, with more features, better windows, etc. However, it is safe to say the explosion in credit that started when Nixon closed the gold window, ending convertibility of dollars for gold accounts, coupled with inane policies of the last three Fed Chairs accounts for nearly all of the price acceleration.
However, it is safe to say the explosion in credit that started when Nixon closed the gold window, ending convertibility of dollars for gold accounts, coupled with inane policies of the last three Fed Chairs accounts for nearly all of the price acceleration.
Real Homes of Genius
Dr. Housing Bubble provides an excellent example in Real Homes of Genius, including pictures of tiny homes listed for close to $500,000 in the Los Angeles area.
