The More Things Change, the More They Stay the Same

One major function of recession is to dampen consumer enthusiasm, typically after years of growth. Another function is to make the public reevaluate and reappraise those areas where prices have gotten most out of line with economic reality. During the 1970s, for example, farmers who sold land for twice its “economic” price watched their neighbors bid it still higher. In Texas, the assumption that the price of oil could only increase drove other prices up as well, especially real estate.

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