Market Crises versus Market Ajustments

A major cause of the current financial crisis, it is said, is the "depressed" real estate market. But "depressed" implies that real estate prices are too low. One could also easily say -- and many people did say -- that real estate prices were "inflated." On the whole, it is a good thing that the price of residential housing has declined -- and let's hope that efforts to pump up prices to their previous "inflated" levels fail.

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