In this paper, taking theJapanesereal estatebubbleandsub-loancrisis in the United States asexamples, we analyzetherelationshipabroadbetweenexcessliquidityandreal estateprices.
And sure enough, the greed got seriously out of hand and then imploded, in fact twice, once with the bursting of the stock market bubble of 2000, and then even more seriously with the realestate and sub-prime mortgage bubble and resulting financial meltdown of 2008-2009.
The U.S. is still reeling from the manipulative build-up of the housing bubble, the sub-prime mortgage mess, the resulting realestate crash, and the financial crisis of 2008 that required a multi-trillion dollar bailout of banks and brokerage firms.