Housing as the New Paradigm Buster :)When I was writing my quick wrap-up of housing bubble thoughts, I was looking for a paradigm quote that justifies the new tulip economy --- no South Pacific Island economy --- no, wait, the Railroad economy --- one more second, let's try the Internet economy --- finally, we got it right, the housing/asset based economy... But I was unable to find what I was looking for quickly enough. However Michael Shedlock has done the work for me.
I am just naturally cautious about anything that claims it can overturn all received knowledge and learning that has been accumulated at great cost with only a few words and fervent hope. Every now and then the paradigm truly does shift, but not that often, so I suspect housing will return back to earth relatively soon, as the language that is being uttered with housing sounds achingly familiar. Barry Ritzholz looks at the same type of rhetoric as expressed through the cultural mediums of high art purchases by the nouveau rich and inexperienced notoriety collector AND the appearance of an issue on high circulation medium analysis magazines as the sign that things are hitting their absolute peak. But both are saying the same thing --- by the time that people are recycling the language of newness and differentness, the phenomena is already old.