Is the Echo Housing Bubble About to Burst?

Echo bubbles aren’t followed by a third bubble.
Speculative bubbles that burst are often followed by an echo bubble, as many participants continue to believe that the crash was only a temporary setback.
The U. S. housing market is experiencing a classic echo bubble. Exhibit A is the Case-Shiller Housing Index for the San Francisco region, which has surged back to levels reached at the top of the first bubble.

This post was published at Charles Hugh Smith on THURSDAY, JULY 23, 2015.