Real Estate Bubble, Anyone?
I've been calling the US housing market a bubble waiting to be popped for 3 years. It just goes to show what I know. Then along comes a Philadelphia Eagle football fan and I feel somewhat vindicated. He basically is doing what people have always done at the height of a speculative Bubble's popularity, whether it was the Dutch with their Tulips or Americans with their Internet stocks in the late 1990s. They have all shown the same wretched excess in their spending decisions that you don't know whether you should laugh at them or feel ashamed for them. In either case you have to ask yourself is this the only person throwing financial caution to the wind. I don't believe he is and I believe we are getting closer everyday to the end of double digit yearly gains in the value of houses. We may even see a leveling off or a decline in the value of homes in the next few years. If I'm wrong then this Eagle fan has little to worry about. Though if I'm correct he might be left with only a memory of a great weekend in Jacksonville, and that won't keep him warm and dry at night the way a home will.