Adam once said that the show “Flip that House” was a watershed in his realization that the market was out of control.
It seems Fed economist David Stockton came to the same conclusion
I offer one more piece of evidence that I think almost surely suggests that the end is near in this sector. While channel surfing the other night, to the annoyance of my otherwise very patient wife, I came across a new television series on the Discovery Channel entitled “Flip That House.” [Laughter] As far as I could tell, the gist of the show was that with some spackling, a few strategically placed azaleas, and access to a bank, you too could tap into the great real estate wealth machine. It was enough to put even the most ardent believer in market efficiency into existential crisis. [Laughter]
Discount causal empricism at your own risk. A single extrordinarly inconvient fact can be enough to crumble an entire theory.
I’d also like to point out how little structural readjustment it took to get people into the housing market. Didn’t seem like adjusting to a new pattern of trade was a problem then.
As I think I have mentioned before, entering the labor market just as the Tech bubble was peaking makes it hard for me to buy structural adjustment without some serious evidence. When I was senior in college we had tons of pre-Med students lining their dormrooms with copies of PERL in a Nutshell and the Javascript Bible.  No one seemed to have any hesitation about abandoning their former career paths in favor of making money on the internet.
At the sametime just after the bust many of us were looking around, for something, anything, to do. I wound up working in a garden center for a while. It certainly didn’t seem like we were stuck in career path and most of us hadn’t majored in anything having to do with computers to begin with. It seemed like no one was hiring.