Who Saw The Housing Bubble Coming? - Forbes.com
Bruce Bartlett, 01.02.09, 12:00 AM EST
Some forecasters were prescient; financial leaders weren’t.
Well, including Daily Pundit, of course, which first mentioned a housing bubble back in March of 2003 - “You Thought There Was Only One Bubble?” - (from the link cited):
The Return of Stagflation - Nicolas Bouzou - Mises Institute
The rise in housing prices is astonishing in the United States, United Kingdom and Spain. A bubble is forming here too, that will burst when long term interest rates rise or when the unemployment rate is so high that it impairs household marketability.
UPDATE: And speaking of good calls, this, from mid-2002…
Daily Pundit » Hundred Year Bubble
What Buchanan doesn’t seem to realize here is that the real doomsday scenario he’s predicting is one of global deflation. That deflation will eventually unwind the incredible world debt spiral of the last century and by itself become the single biggest threat to the center-left democracies of the industrial-technological world.
Submit to Stumbled Upon!
Just now a friend in the office assured me that once Obama creates tons of jobs in April, everything will be just fine. We just need to create employment to restore consumer confidence and keep inflation (instead of deflation) going.
I told him that the stock market will crash again, even lower next time, and things are only going to get worse. I tried to explain the difference between the government printing money to invent jobs and the private sector creating jobs, but he didn’t see that it made a difference, jobs is jobs and we need jobs. He said it worked in the Great Depression (it didn’t), and that the alternative is what happened in Japan.
I thought about asking him why Communist economies function so poorly even though the government creates as many jobs as they want, but decided I’m already unpopular enough already.
We agreed to disagree. Hopey New Year.
-
Funny. What Japan did - propping up bad banks and bad businesses and flooding the financial system with fiat cash - looks a hell of a lot like what the current “recipe for recovery” here in the US is going to be.
CommunismBailouts have never actually failed, they’ve just never been done right.Or by the right people, calm yourself the Lightbringer is coming and all will be right with the world.
You may be right….
Bill, In the last few months I have been convinced that this particular solution may be the only one we have, I just hope I am wrong.The pols don’t care and the majority of our “citizens” think they should be supported by someone from birth to death.