I just came across this piece by Warren Buffet, originally published in October 2003. It’s interesting and very relevant right now. What I particularly liked was the way in which certain aspects of it can easily be applied to to the Irish property bubble economy.
A few pundits in Squanderville smell trouble coming. They foresee that for the Squanders both to eat and to pay off — or simply service — the debt they’re piling up will eventually require them to work more than eight hours a day. But the residents of Squanderville are in no mood to listen to such doomsaying.
Sounds a bit like the whining that followed the broadcast of Future Shock on Monday evening. Whining solely from those with clear interests in seeing the property bubble boom continue. Jim Power, chief economist at Friends First, I’m looking at you and your performance on Prime Time last night, and all the other ‘economists’ paid by mortgage lenders and estate agents who have flooded the airwaves over the past two days to make gentle reassuring noises. Except unfortunately even the reassuring noises aren’t quite so gentle anymore.
Jim Power: "If we saw another two or three years of the sort of insanity we’ve seen over the past couple of years in the housing market then I would agree with Morgan."
So we’ve had a couple of years worth of insanity, yet the market is still soundly based on fundamentals? I’m confused, Jim …
I’m also confused as to whether you are an independent economist, as you are billed in today’s marvellously deceptive myhome.ie Property Barometer [story (HTML), full report(PDF)]. What makes this article particularly laughable is the accompanying table of house prices. I’ve added some helpful colour coding to the version below.

Green columns = not news. Red column = news. Attempt to put a positive spin on this = you have got to be kidding me, right?
Anyway, back in Squanderville, the bookies have suspended betting on there being a decrease in house prices in 2007. Curiously, they’re still happy to take a punt on any kind of house price increases in 2007. I wonder why?
In a superb stroke of irony, the ECB will be meeting in May, when they are expected to announce the next interest rate rise. In Dublin.