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  • California / economics / economists / Harvard University / madness of crowds / Nicholas Retsinas / property / property bubble / Raphael Bostic / Thornberg / UCLA
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Failing Grade

by mike · 2008-01-20

But it’s probably a mistake to expect the current housing market to behave like the stock market of the late 1990s. “There is no bubble!” says Raphael Bostic, professor at USC’s School of Policy, Planning and Development. Bostic’s reasoning—shared by [Nicolas P. Retsinas, director of the Joint Center for Housing Studies at Harvard University] and senior economist Christopher Thornberg of the UCLA Anderson Forecast—is that there are rational explanations for the price increases, outsized though they may be. “It’s Economics 101,” Bostic says. “A simple formula: Supply and demand.”

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