The only Economy that is doing well, namely Germany, never had this kind of Housing Bubble, actually it should be called HOME PRICES BUBBLE, since
more than anything else, it is the constant and continuous hiking up of
Home Prices, everyone trying to get a home and buy one, so that they
are also "Getting Theirs", their "Imaginary Wealth", like a panic, like
an imaginary Resource Scarcity myth, homes are running out, you will be
left in the streets and such. And notice that this Home Prices Bubble
occurs in static economies that are insecure (Spain, Italy, Greece,
etc.), where a majority of the population are home owners (freezing all
of their wealth and savings in buildings fooling themselves that the
buildings will always have a future wealth), Germany has only 50 % home
owners and 50 % renters, and in fact the renting part is what makes an
economy "flexible" and such, let's hope that Germany too doesn't decide
to have their own Home Prices Bubble.
And China is now
constructing entire cities on this mythology of High Home Prices meaning
that they think they are All getting Rich, etc. They are building like
crazy, hiking up prices, and have millions of empty homes. Good Luck
With That, China Also Is TOO BIG TO FAIL...
The moral flaw is
that Increasing Housing Prices is money being used as a weapon against
the poorer segments of society: the richer (or those having more money)
hike up home prices in cities and use money as a weapon to beat up the
poor in this manner.
The logical flaw is that of not recognizing
that the Economy is a Process, nothing can be fixed forever, everything
can be defaulted upon, the value of anything can always change according
to how the forces play out and such. By hiking up home prices, people
think they can establish fixed wealth in the future, when this is not
the case, the Economy is a constant Process, ever changing, home prices
are not a given and such. You can't freeze wealth in homes and any other
THE APE MAN, THE EIGHT MAN, THE APESTER...