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Article:
Cutting Edge Real Estate, Is the Bubble Ready To Burst? by: Tim Phelan Of course, this is the big question in real estate now. . . Will the so-called real estate bubble burst like the dot-com bubble did a few years back? There are some good arguments on both sides of the issue. Whatever happens in the next few years, it will affect millions of Americans, and therefore also millions of people worldwide. If the bubble does 'burst' as some say, it is all but certain we could, or more like would, go into a recession. A deep one. Right now the real estate business has been a prime reason that the economy has been decent the last few years. It has been one of the few consistently bright areas of our economy. First of all, to compare the real estate industry with the dot-com industry is unreasonable. It's comparing apples with oranges. The real estate industry has been and will always be a central part of the US economy. It will never disappear and there will always be a need and demand for it. Investing in real estate makes sense for the long term. On the other hand, the dot-com bubble was not based on anything more than speculation. Many businesses were trading on the stock market for unreal amounts of money and never made a dime in profit and ultimately never would. So for me, some of this thinking is this: 'Well, the stock market had the dot-com boom and then it collapsed, so now we have this real estate boom so surely it will collapse also.' I just don't go along with that comparison. Again, these are totally different industries and markets. Heck, if we can pay $'20
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