Buffett & Munger from Berkshire on the Housing Bubble
I dont think there is a better explanation of the bubble we're in. You have to read this, and think how ridiculous things really are:
Buffett: "I recently sold a house in Laguna for $3.5 million. It was on about 2,000 square feet of land, maybe a twentieth of an acre, and the house might cost about $500,000 if you wanted to replace it. So the land sold for something like $60 million an acre."
Munger: "I know someone who lives next door to what you would actually call a fairly modest house that just sold for $17 million. There are some very extreme housing price bubbles going on."
From CNNMoney