As we recline in our over-inflated-priced homes we listen to the experts speaking of the bursting of the real estate bubble. Are they trying to frighten us or what?

We are all aware that everything we look at has been touched by inflation. The car that sits on the showroom floor costs more than the first house we bought in 1962. A meal for two in the average Long Island restaurant is hovering in the $60 to $100 range. Our taxes also have gone through the roof. Why should a real estate bubble's bursting be such an item for fear?

What is a bubble anyway?

The definition according to the Random House 1973 Dictionary of the English language is: Bubble - 1) a nearly spherical body of gas contained in a liquid. 2) anything that lacks firmness, substance or permanence, delusion. 3) an inflated speculation, especially if fraudulent: example: (The Florida real estate bubble ruined many investors).

When we purchased these beautiful, comfortable homes way back when, we were seeking a safe place to live and bring up our children in an atmosphere where they could play and learn in a protected and secure environment. We did not buy a house as a trading item like stocks or bonds.

Two questions to ask oneself:

1) If I am content in my home, why should I fear the bursting of the bubble? The price will continue to fluctuate and there is nothing to stop that.

2) Should I sell now quickly and take advantage of the higher price? But where would I move to since everything is too high priced?

When I was growing up in the Bronx (1940, 1950, 1960) nobody ever imagined themselves as "millionaires." It was a term reserved for the Rockefellers, the Fords and the Vanderbilts. Today on Long Island there are numerous "house millionaires." The world has definitely changed because of inflation.

My advice - relax and don't worry about any bursting of that "spherical body of gas contained in a liquid." Enjoy your home and remember, you are living on Long Island, a very desirable place.