although i don't neccessarily think the article is exhaustive of all important driving forces beind the bubble phenomenon (and it doesn't claim to be, which makes it an honest read), i think the "feedback loop" mechanism operates differently in the real estate market, with the major factor to consider being TIME DELAYS. those kind of delays in the system are often enough to create major oscillations, with huge benefits to the people who are in the right place at the right time, and huge penalties for laggards who just follow the herd too late.
if interested in system dynamics, feedback loops and such, this would be the place to find out more:
http://www.amazon.com/exec/obidos/tg/detail/-/007238...

i agree. i was not saying there is no bubble in real estate. i was just saying that the feedeback mechanisms working there are different.

are you talking about Boston?