Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Businessweek Archives

"In the year 2020..."


I remember I once wrote a profile of Robert Prechter, the apostle of the “Eliot Wave Theory,” which believed that many things in life—including the stock market—ran in cycles, and you just had to figure out the rhythms of each cycle to profit from them. I told my editor at the time that Prechter believed that history repeated itself, and the editor said, “Humph. It’s a limited menu, isn’t it?”

So if past is prologue, then we should look to the past experiences of regions that have suffered housing collapses to understand what some bubble markets have ahead of them. Scott Burns, a financial columnist for the Houston Chronicle, offers a nice retrospective of the effect that the S&L crisis and oil bust had on the Houston housing market…

You can read the details for yourself, but Burns' conclusion is this:

The Texas template tells us we could be in for a 14 percent to 25 percent decline and an eight-year to 14-year wait for recovery. That's real history. It's not hyperventilation from the Chicken Little chorus.


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus