Bubble Babble In Biz Journal

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There’s a decent housing bubble debate in the current Los Angeles Business Journal, but it’s on the paid portion of the site, so I will summarize:

Economist Christopher Thornberg, formerly of UCLA and now of Beacon Economics, argues it is a bubble, and ‘the pop is not over ... Past bubbles have been years in the making and years in the unmaking. ... We have a ways to go until the bottom is found.’

He concludes with this advice to homebuyers: ‘If you can wait, do so. There is no point rushing into a market tht is far more likely to get worse than get better.’

Speaking for the No-Bubble argument is Mark Cohen, president of the Beverly Hills mortgage brokerage firm Cohen Financial Group: ‘A crash or a long drawn-out correction has not and will not happen.’

He concludes with this: ‘No matter what fluctuations the market experiences, over time, prices in Los Angeles rise.’

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