Because prices are rising so rapidly, particularly in California where kool aid intoxication is a cultural addiction, many people are wondering if we are inflating another housing bubble. My answer to that question may surprise you. No, we are not inflating a new housing bubble. It's different this time. It's never different, is it? Well, the last housing bubble inflated prices well above the stable equilibrium of cost of ownership relative to rents based on a foundation of toxic mortgage products, most notably the Option ARM. The current rapid rise in prices is caused by different circumstances, and it's being built on a foundation of stable 30-year fixed-rate mortgages. When the federal reserve lowered interest rates from the bubble-era 6.5%…[READ MORE]