Download or read book Understanding Housing Bubbles: Second Edition written by Bill McKim and published by . This book was released on 2012-12-31 with total page 184 pages. Available in PDF, EPUB and Kindle. Book excerpt: Don't eat the seed corn. During most of the first decade of the twenty first century, a large part of the wealth usually used to create new wealth was diverted into much greater consumption of wealth. This violated the Law of Economics that must be obeyed in order to have a viable economy: Wealth Created Must Be Equal To, or Greater Than, Wealth Consumed The reason that this occurred was that a Housing Bubble afflicted the housing market and the financial system. This book tells what Housing Bubbles are, how and why they occur, how they affect the housing market and the financial system, what can and cannot be done about them, how to prevent their occurrence, and what can be done to repair the damage done by the most recent Housing Bubble. It exonerates all individuals, groups, and agencies and puts the blame squarely where it belongs - on everybody. It tells what must be done, how to do it, who must do it, and why it must be done immediately.