November 30, 2008
Krugman: The housing bubble owes the dot-com bubble an apology
And what I'll never understand is why Greenspan and Bernanke chose not to see the housing bubble.
Either they're complete idiots, or they're criminally corrupt.
Period.
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Yet this is the man advocating the pumping up of the Treasury Bubble.
Krugman is the next discredited economist.
When people go back to economics 101, we may have a chance.
When people accept short term pain for long term gain we may have a chance.
I'm not holding my breath.
i still maintain that Greenspan is just the system's fallguy (and not in a cool '80s stuntman/crime solver sort of way). and Bernanke's an acadmic pansy that told us all what he would do... so that one falls on his appointer.
ABOLISH the Fed.
http://www.alleyinsider.com/2008/11/the-pets-com-sock-puppet-wants-a-bailout
I feel pretty cool now that a nobel prize economist said exactly what I have been saying: all you needed to look at was home prices to incomes and home prices to rents.
Not that I thought of that myself. I read an article in 2003 or 4 and that's when a light really went on for me.
There are so many other facts and figures you can look at but all you need to know is that simple, basic principle. As with most things.
Same thing with bernanke's speech about deflation: he has a printing press and he intends to use it. Bing, on goes the light. This brief period of 'disinflation' will be followed by a period of high inflation.
There is a reason why we call them 'precious' metals.
Krugman may or may not know what to do get us through this crisis, but he sure knows how we got here.
how many phd's does it take to see a bubble?These idiots are so clueless. they sit around and read books and waste time on thier computers.the evidence was right in front of thir faces.Bunch of baffoons I say.
He is clearly a better columnist than public speaker. To his credit, he recognized the housing bubble early on - right along with Schiller and Schiff. While it's clear he doesn't know how to fix this mess any better than anyone else, what I like about Krugman in general is that he is a champion of social justice for the common man.
"what I like about Krugman in general is that he is a champion of social justice for the common man."
LOL
What exactly does that line of bullshit mean mimi? Is "social justice" a new synonym for hyperinflation? And I suppose the definition of "common man" can be extended just a tad to include disaffected people like Robert Rubin, or maybe even corporate entities like GE and GM?
Krugman won a Nobel prize -- good for him. Let's not carry it too far.
Krugman is a complete moron. He's from the same school of discredited, Keynesian poor hygiene, hairy faced "economists" that Bernanke came from.
And they give this clown the Nobel prize.
Winning the Nobel prize just means you know how to kiss the ass of the establishment and do their bidding.
These guys are not stupid. It seems that someone behind the seen has a pretty coherent agenda. And the financial well being of US citizens is not the top priority. Destruction of the well being of US citizens is not the top priority either. The US citizens, like Iceland citizens, are just a tool in this game. And the game is not about money, it is about control and domination. They don’t really have a problem with sacrificing US citizens so control could be maintained.
You can go so far with control using military force but financial power can go much further without people’s notice.
The US dollar is not just the US currency, it is the world trading currency and the world reserve currency. And these bankers are going to make the most out of this in order to remain in control.
We have corruption that cannot be eliminated with few people replacement. The only way to stop this game is by stop wanting US dollars. Now, how exactly we can do that?
Keith, said:
‘And what I'll never understand is why Greenspan and Bernanke chose not to see the housing bubble.’
Greenspan and Bernanake could not have known that people earning $1,000 a month would buy a house with a mortgage of $1,500 a month.
Greenspan and Bernanake could not have known that lenders would give loans to people they knew could not pay it back.
Greenspan and Bernanake could not have known that soo many sheeple would fall for the Realtor cheesiness that ‘housing always goes up’
Greenspan and Bernanake could not have known that a whole generation of inexperienced College grads would get jobs in IT and Finance with beginning salaries many many times more then they where producing, and without having a concept of planning for the future, went out and paid more for a Townhouse then experienced people would for a Mansion, then buy an imported car that up until recently only experienced Doctors and lawyers could afford, not to mention the flat screen TVs leather couches, granite countertops and SS appliances etc.
Greenspan and Bernanake could not have possibly understood this.
Why are we not questioning the insane salaries College grads are expecting?
Does it make sense that a spoiled brat who partied thru the college years on Daddy’s expense should start out earning more then, experienced Plumbers, electricians, carpenters, appliance service technicians, boiler engineers?
Could it be that this skewed the concept of personal financial responsibility a bit?
RE: "what I've been saying: look at was home prices to incomes and home prices to rents."
the problem with that theory is what's the definition of income? businesses like cash since they can hide income, look poor, etc...
how can you complain about the rich passing the wealth on to their spawns any wazy it could be passed.......as for example wall st. jobs...........
It will be interesting to see what happens to areas - like here in Huntington Beach - that experience massive foreclosures and bank-owned properties - which will happen.
Areas that were once considered "the place to live" may soon become "the place to avoid".
Areas that were once considered "the place to live" may soon become "the place to avoid".
In 1928, North Philadelphia was the richest neighborhood in the world -- a teeming center of mass production.
Then the layoffs and foreclosures started.
Now it's one of the worst slums in America.
You should read about the IMF & Latin American economies in the 1970-80s if you want to understand what is going on with the US.
Krugman is a fool and totally unworthy of any award that would confer upon him the status of a pioneering or important economist.
This guy made statements every year for the last eight years that the US "would be going into recession" very soon. So, he was finally right. I could be right too if I said the same thing every year for almost a decade.
He's as dopey as his Princeton comrade, Ben.
QUOTE OF THE DAY:
"These mortgages have been considered more safe and sound for portfolio lenders than many fixed-rate mortgages," David Schneider, home loan president of Washington Mutual, told federal regulators in early 2006. Two years later, WaMu became the largest bank failure in U.S. history."
CNN---------------
Most people think they are of above average intelligence.
Rich people think they got rich because they are God's gift to the world. Poor people think they were unlucky.
In my board room experince, I can attest that for the top guns, the whole thing is just a big game where they can't even imagine themselves losing.
For Bernanke, it's all fun and games, a real life laboratory where he can now finally test his theories. Of course he thinks he will win.
happy snapper,
Sure they couldn't have known that people would be as stupid as they shows themsleves to be.
However, by 2003 Greenspan could see it happening if he bothered to look and instead of twiddling his thumbs could have jacked interest rates to 42% and ended that quick smart...
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