Bursting Bubble Would Hurt L.A. County

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Hat tip to Sacramento Land(ing) for pointing out some bubble logic in today's editorial in the LA Times:

The property boom is good news for (Los Angeles) county today, but in the words of Chief Administrative Officer David Janssen, "it's scary as hell." Janssen cites the recession-triggered meltdown of 1991, when the bottom fell out of the real estate market and the county's finances went into a tailspin. The ensuing fiscal wreckage stretched out over several years; by 1995, the county was teetering on bankruptcy. An uptick in the economy — and two federal bailouts — kept the budget afloat.

-- The Boy in the Big Housing Bubble/Los Angeles and Beyond