The View From Inside

Even more evidence has surfaced about the inevitable bursting of the US housing bubble.  This piece describes how employees of home building companies are now dumping their stocks at a frenzied pace.  Yet still, Wall Street analysts are pushing investors to buy housing stocks.  If these stocks are so good, why are the employees of the companies selling them?

All this is reminiscent of the last years of the dot-com bubble, when tech insiders were also selling their stock before the crash.  History is bound to repeat itself here.  What bothers me about the current media coverage is that very few reporters mention the cyclical nature of real estate prices.  The California market, for example, has gone through several boom and bust periods over the last 35 years.  Why do people think real estate won't crash again?