Let's admit that we were all blindsided by it
Let's admit that we were all blindsided by it
The free market economists of the Austruan school did
I did.
Signed,
Your biggest critic
rober shiller you econ noob
And this is why college is a stupid idea!!!
I could've told you they were building too many houses cause nobody was livin in them.
:spits tobacco:
Umm... ever heard of Flagpole?
No a bunch were predicting it. Housing value was rising to quickly versus income levels(especially for low income owners). Ninja home owners were the most obvious sign of a bust happening.
Let's admit that a majority of American honestly didn't care about housing prices. If they were "blindsided" by the housing crash it was like how I was blindsided the other day when I expected 80 degree weather and it was only 70 degrees.
It was only when Wall Street started panicking and threatening livelihoods that most Americans even started to care. In other words it was really the credit derivatives market that most (not all) people were blindsided by.
Ben Bernanke wrote:
Let's admit that we were all blindsided by it
If you download Clinton’s National Home Owners Strategy, 1995, you will see that even an intelligent child would have foreseen the obvious flaws and unavoidable result of such idiocy.
https://confoundedinterest.files.wordpress.com/2013/01/nhsdream2.pdfHey, Binks, can you point us to where YOU pointed out that idiocy at the time. Thanks.
Ben Bernake? Wrong Fed Chair. Try Alan Greenspan
wrong guy wrote:
Ben Bernake? Wrong Fed Chair. Try Alan Greenspan
There has never been a Fed Chair named Ben Bernake.
I knew it was going to crash and went to cash in 2007 before the big meltdown in 2008. Ever read "The Big Short" by Michael Lewis? There were many others including the good folks at Goldman Sachs.
Seriously, when I read that when three families of migrant field workers were allowed to qualify for a shared mortgage in around 2006 in the Wall Street Journal one knew that we were in crazy town.
Oh yea, one more thing. Both Bernanke and Greenspan are Republicans.
Wrong. Christopher Thornberg did.
I recall going to a financial adviser in about 2005 who told me with a straight face that my then $200K home would be worth $7 million in 2040. I knew a correction of some kind had to be coming. However, the depth and breadth of the crash was still surprising.
Hell, any borrower of that era should have predicted the crash. When every bank in town is offering you a loan value that your income can't support on the argument that "well, your income will probably be higher by the time rates rise too much or the thing balloons," that should raise a red flag. You're hopefully smart enough to walk away from such a deal, but you know that millions of idiots are being offered the same thing.
Dean Baker, Med Jones, Nouriel Roubini and Peter Schiff all predicted it.
Schiff was and advisor of Ron Paul at the time.
Lots of people predicted it. It just took FOREVER to happen.
The real question is why hasn't the Canadian housing bubble burst? Answer that one?
It was like all bubbles. Everybody knew it was going to happen, nobody knew when. Kind of like Snap, Old Maid, or Musical Chairs. But economists do know that.