@ganymede I am a real property auditor and this is what I do everyday in my real life. Comparing economic principles to accounting principles is inaccurate as they aren’t the same things or even really in the same category of study. One is the framework for how financial information is recorded. The other is theory based on how people behave with money. I am not disputing that people in general seek to maximize gain and minimize loss with very little future consequence thinking involved. Accounting concepts seek to determine what guidelines keep short term greed from doing long term economic damage. See WorldCom, see Exxon.
ETA: The issue isn’t that real estate speculation is increasing the price of real estate. The problem is what is going on in the accounting to make that happen. Take a look at Zillow’s most recent 10-K. It is enlightening and I expect the SEC is going to step in eventually.