Woods WTF
Norwegian Wood -- The Beatles
The WTF prices of Great Housing Bubble are an obvious illustration of the greater fool theory. Usually, the detachment from fundamental values is not so great. Prices that look foolish in retrospect do not always look foolish in the moment. Irvine house prices from 2004 onward looked foolish even as people were paying them. The absurdity of the situation becomes even more apparent when you see the asking prices of those who purchased at the peak of the Ponzi scheme as they look to find the next greater fool. Today's property is one dramatic illustration. These buyers grossly overpaid right at the peak in summer of 2006. Rather than admit defeat, they are asking for 50% appreciation from the peak with an asking price that is so ridiculous you just have to ask, "WTF?"
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