Bubbles

Lately we have read reviews from two books writing about the bubbles.

First bubble - Greenspan's Bubbles - The Age of Ignorance at the Federal Reserve
by William Fleckenstein and Fred Sheehan

Financial Journalist William Fleckenstein studies the record of Alan Greenspan,Chairman of the Federal Reserve from 1987 to 2006.
Between 1937 to 1987, there were no bubbles, but Greenspan helped to create two bubbles in ten years - in stocks and then in real estate - by holding interest rates too low, punishing savers. He helped to make the American people worse off by redistributing wealth to the rich, the bubbles' boosters and sponsors.

Second bubble - The Great Housing Bubble:- Why did house price fall?
by Lawrence Roberts

The book is a detailed analysis of the psychological & mechanical causes of the biggest rally, and subsequent fall of housing price ever recorded.
This book examines the causes of the breathtaking rise in prices and the catastrohic fall that ensued to answer the question on every home owners' mind.
House price to income ratios, price to rent ratios and other detailed in the book showed how far out of line prices had become by 2006. A full year before house prices started to crash, he was predicting it, and many of the crash's details.