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Bubble theory |
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Bubble theory A theory under which security prices sometimes move wildly above their true values, or the price falls sharply until the "bubble bursts". It is also possible for a bubble to deflate gradually. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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A couple years ago economists at UCLA's Anderson Forecast floated their housing price bubble theory, which has hovered over the residential real estate market ever since. Many critics of the real estate bubble theory consider San Diego's slowdown not a foreboding harbinger of residential real estate doom but a natural and healthy check on a rate of appreciation that is unsustainable. Nima Nattagh, an analyst at FNC, which supplies real estate market information to the mortgage industry, doesn't subscribe to the bubble theory. |
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