If ever there was a clip that illustrated the absurdity of the housing bubble, it is this one here.
In this clip, we have a woman who bought a house for around $750,000, and needs some cash to renovate it. Along comes the home appraiser and tells her that after two years of ownership, the house is now worth $1.3 million. Furthermore, if she does a couple of quick and cheap repairs, the house's value increases to $1.6 million.
At no point is this appraisal tested against the market. No, this appraisal is about a home equity loan. The whole thing is pure fantasy.
Housingheads versus the bubbleheads.
Here we have some long-haired realtor type predicting 10 percent house price appreciation in 2007. However, his unbridled optimism about real estate smacks straight into Peter Schiff, who coolly explains why the housing market has a long way to go before it stabilises.
It is a tidal wave of "for sale" signs
Here is another out of touch kooky academic talking rubbish.
The crash accelerates. Now, you can find homes selling at a 50 percent discount.