housing bubble: In a new article, he warns that the economy may be on the edge of a giant wealth bubble that will collapse with possibly-dire consequences, according to The Japan Times. Steuerle is especially worried by parallels between Americans' present wealth stocks, homes and private businesses and the overvaluations of 2000 the tech bubble and of 2007 the housing bubble . Suffering was widespread. The latest is Eugene Steuerle of the Urban Institute, a liberal think tank in Washington. In the 2007-2009 Great Recession, monthly unemployment peaked at 10 percent. ; To test his theory, Steuerle compared U.S. household net worth what people own minus all they owe to the economy's annual output, gross domestic product. Americans' assets, from homes to stocks, grew roughly in tandem with the overall economy. Since 1950, the ratio has mostly remained 4-to-1 or less.
(news.financializer.com). As
reported in the news.
Tagged under housing bubble, bubble topics.