Whether you think we’re actually in a housing bubble, and whether we are or not in actuality, doesn’t really matter, in the long term. The truth of the matter is, almost certainly we will find ourselves in one again. They happen regularly, and in lots of different countries, and for lots of well-meaning policy reasons. Alex Pollock has written a very good, concise piece for the American Enterprise Institute that explains why these policies are appealing to policy makers, and why bubbles are a problem.

 

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