i really only started hearing about AI bubble this year. with the housing bubble, people were talking about it in 2005 and it took years for it to finally break. maybe AI bubble is the same
Except the housing bubble wasn't actually a bubble. Housing prices today are much higher than in 2007. Based on realized results, the mispricing wasn't the peak of the housing bubble but the trough of the crash. With the benefit of hindsight, the peak actually undervalued how expensive housing would get. (Speaking about the US market in aggregate. Not other countries, nor localities like Las Vegas where the case for a bubble is stronger.)
The price of housing is ultimately a political choice. If voters choose to restrict supply of housing through zoning and other laws, prices can be pushed up hugely.
Yes it was a bubble. (Also a much larger related credit bubble). A big run up followed by a crash. Many companies went under, many people suffered. The fact that prices recovered a decade later doesn't change any of that.
tedsanders|6 months ago
klipt|6 months ago
laughing_man|6 months ago
Yes, the price of housing is crazy. But so is the price of eggs.
DonsDiscountGas|6 months ago