Before the current subprime mess hit, too many people referred to the situation as a housing bubble. Incorrect. I’ve said for some time it was a cheap capital bubble, and like everything that’s too good to be true, it’s time to pay up. It’s nice to see at least one veteran industry analyst agrees. From the Wall Street Journal:

“The [current] crisis was an accident waiting to happen. If it had not been triggered by the mispricing of securitized subprime mortgages, it would have been produced by eruptions in some other market. As I have noted elsewhere, history has not dealt kindly with protracted periods of low risk premiums.” - Alan Greenspan