Comment by bumby

Is this evidence of a bubble predicated on suppressed wages though?

When lending costs were near-zero, housing was doing "great". That doesn't mean it's a smart or sustainable policy, even if we had gotten used to that as the norm.

I sometimes wonder if the same applies to restaurants. Consumers got used to lower prices predicated on lower labor costs. Many got used to eating out very often and to a certain extent the economy responds with more restauranteurs. But it couldn't sustain that once the service cost "bubble" popped. Maybe those low labor rates are not the norms we should accustom ourselves to.