Chris will be launching this wonderful chapter too.

Bubbles... Maybe one of the most interesting chapters .

I am sure the FED will be mentioned in this chapter :)

 

Keep it superb, chris.

 

We have been hearing bits and pieces of the crisis starting to unfold and this REALLY puts it together....and we have not even reached the peak oil section yet! Thanks Chris. Very well done. You should consider teaching :). David

Does anyone know what sort of ETA we can expect for the rest of the crash course presentation? I'll keep checking back

According to the numbers quoted by Chris, house prices increased on average by a factor of 2. In comparison to the tulip mania (price increases by a factor of 30), this is a low multiple and for that reason, I think calling that price increase a "bubble" is an exaggeration. Exuberance is perhaps a more appropriate notion. I also doubt that house prices will return to the pre - bubble levels. Given the tremendous increase in the price of many commodities (copper. oil, wood), the increase in house prices is to a certain extent justified. After all, inflation is real. Inflation is not only a monetary phenomenon. With oil and other resources depleting, the purchasing power of money decreases steadily even if no new money is being printed. Housing is an important capital stock in the US economy. Since our manufacturing sector shrinks steadily, the only source of income for our banks are mortgages, that is, loans backed up by houses. Houses are the only remaining sourse of capital in the US. For that reason, a crash in the housing markets can not be allowed.