NEW YORK — The housing bubble burst in 1987, sending the U.S. economy into a recession.
The stock market crash that followed, which followed the dot-com bust, brought about a recession and plunged millions of Americans into deep debt.
Today, the real-estate bubble has burst, the stock markets are back up and Americans are once again enjoying the good life.
The bubble burst at a time when most people had been living comfortably and the economy was booming, said Robert Dutko, a senior economist with the Economic Policy Institute, a Washington think tank.
The bursting of the realtors bubble and the ensuing recession caused a lot of anxiety among Americans, he said.
In the aftermath, many people lost their jobs, their homes and their retirement accounts.
Today, many Americans are back to where they were in 2007, he added.
There is still a lot we don’t know about the housing market bubble and its effect on the economy, Dutkov told ABC News.
We need to know more about what caused it and what happened after it burst, he told ABC.
But there are clear benefits to the housing bubble.
The U.P.S., a real estate data company, has estimated that a new home was worth $1,100 more in 2007 than it was in 1987.
The U.N. says that the U:s housing bubble has produced a record number of home-ownership increases, and it has boosted demand and the amount of housing supply.
Some analysts say that while the recession created some negative effects, the bubble also generated an economic boom.
When the stock bubble burst, some investors fled, said Richard Katz, an economist with Deutsche Bank in New York.
They are now worried that the recession will be worse than the bubble burst.
And, he adds, it has created a very large new pool of investors.
At least some investors have been willing to pay for a home that is not a high-end one.
“You have these people who are willing to be able to afford a home,” Katz told ABCNews.com.
If the bubble bursts, Katz said, there will be an even larger pool of new homeowners.
What is a bubble?
A bubble is a financial market bubble, in which investors buy and sell assets in a speculative frenzy.
The first bubble popped in the U, but the current bubble is different.
A bubble typically occurs when investors think there is a strong chance that the underlying assets will be worth more than the value of the assets.
The most common example is a stock or a bond.
If a stock price goes up, then the investors believe that their holdings are going to increase in value.
They think that they will be able get a better return on their investment.
If the stock price drops, they feel that the price of their holdings is going down.
They feel that they are losing money on the stock and they are buying lower-quality stock.
The next bubble usually occurs when the price drops dramatically, which is why it is a great time to buy a house.
A bubble can grow so large that investors believe the market will crash and that their investments will have lost all value.
When that happens, a large portion of investors will sell their homes.
In the past, bubbles can take decades to burst.
In 2007, there was a similar bubble, and the housing boom that followed was the worst in history.
The UU-Haus, the housing finance company that regulates real estate in the United States, has said it will be more careful in determining when to declare a bubble.