HOUSING IS NOT A HOUSE OF CARDS

摘要

Don't tell Federal Reserve Chairman Alan Greenspan that the red-hot housing market is a bubble about to burst. He scoffs at the rising chorus of worrywart economists who fear that buyers will flee housing as prices continue to soar, knocking out the last prop holding up consumer spending. As Greenspan recently told a hearing on Capitol Hill, "We have looked at the bubble question, and we have concluded it is most unlikely." How can he be so sure? For starters, Greenspan and many economists say housing differs from stocks and bonds, which can be sold in seconds with a few computer strokes. Stock ownership turns over more than 100% a year, they say. In contrast, buying and selling homes involves high transaction costs, preventing people from flipping them quickly. That makes housing inherently less speculative than stocks.