Luxury in trouble? History has no cash bubbles

  • Internationally, "devaluation" is everywhere, and it's a good reason to get your money out of there and over here.
  • The state of the top of the housing market is an important local indicator.
  • The ongoing housing recovery, at last mostly free of distressed sales, is appreciating bottom-up, little or no froth at the top.
  • Jumbo mortgages are in an anti-bubble. Jumbo underwriting is far tougher on credit, income, income stability and appraisal.

“Silly season” is late summer, and April Fool’s is still three weeks away, but Bloomberg and Vanity Fair have published tales of distress among vendors to the ultra-high-net-worth crowd. A Manhattan apartment found no takers at $45 million, so the developers have split it into three units at better price points.