Nice to see the U of Michigan economist being honest (go blue). The guy from Texas was a bit too rosy, and ignorant of national issues and bubble causes. But then again, we know another ignorant fool from Texas, don't we.
History will not be kind to cheerleaders, or "experts" who called bottom. Again. And again. And again.
And I wonder if the NAR and Lawrence Yun are pissed they weren't invited as usual. Perhaps the days of the MSM going to the NAR and realtors for "expert opinion" are over?
10 comments:
both guests on the NPR clip are saying house prices will stay high and poor people are screwed. how does this play into the housing crash story?
NPR should have said PBS
"that guy from Texas"...implies U of T. He is from A&M. Just pointing that out to anyone who didn't bother to watch the video.
Go Horns.
You may now return to your scheduled posting...
Finally some mention of New England.
We feel so left out in most trendy bubble talk, thought we've also done a fine job of building a top-notch bubble.
If you really want to know how much economists know read Nassim Taleb's book "The Black Swan." (They dont know anything. It's not really a new idea.)
http://www.amazon.com/Black-Swan-Impact-Highly-Improbable/dp/1400063515
Nassim Taleb website:
http://www.fooledbyrandomness.com/
http://en.wikipedia.org/wiki/Irving_Fisher
Yes, you are correct ref: how history treats "experts" who make the flat out wrong call!!
These guys are geniuses! Build houses people can afford to buy; what a concept. Nahh it would never work lets spin some more.
I didn't see much intelligence there from any of them. Sure...you can give props all you want to the guy from michigan but all he is doing is pointing out the obvious.
Didn't you notice that all the others seemed to stutter and stammer when they really probably think in the back of their minds.."WE'RE FUCKED"
I didn't see any of them saying anything that wasn't reflective of the areas they were reporting on (except the CA guy: HE'S too rosy, IMO).
You all DO realize that real estate is NOT experiencing a bubble NATIONWIDE? Yes, there's monumental price bubbles/bursts in areas like the West Coast, the South (esp. Florida, lesser so Georgia, etc), and some areas along the Eastern Seaboard, up into New England?
However, many parts of the country, including Texas, the Midwest, Northern tier states, etc, have largely been bypassed? Take Texas: Houston has been depressed for years, never recovering from the job loss and recession of the 1980's/1990's. So the real estate there never took off, like it did elsewhere in the Great Housing Bubble of 2000-2006.
So what the guy said about Texas is true: the median price in Texas IS significantly less than elsewhere, and only recently has started taking off. Why? I'm guessing one factor is all the smart people who knew a bubble when they saw one, and sold their over-priced homes in CA, etc, and decided to head for places like Nashville, Austin, etc, where their $$$ goes a lot further.
It's called Californication, and it's not a new trend. Places like CA are exporting not only the population (negative pop. growth in CA for the last 5 years), but as important the housing wealth netted from the sales of the refugees' over-priced homes; however, the booty largely is going to another state/neighborhood to be spent in the local economy there.
In exchange, the CA neighborhood gets a freshly over-extended buyer who probably won't be spending on much, besides their property taxes and ramen. Many of these buyers cannot afford to even add furniture, using lawn furniture instead.
But don't take my word for it.
Here's a nice chart offered by National City, a research firm that provides reports to bankers, etc.
http://tinyurl.com/yr23wb
Scroll your mouse over a town, and you can see their calculations for how over-valued an area is, compared to trend.
In many areas, you can see the peak of the bubble for that area, which was about 3-4 quarters prior to now.
FWIW, the guy who runs the bubblebuster.com site says he's not updating his site as frequently, as he feels the National City site is doing such a good job with theirs.
I think both sites are good, as they show different aspects. But the point is, a dedicated bubble buster supports their data...
Nice to see the U of Michigan economist being honest (go blue). The guy from Texas(a&m) was a bit too rosy, and ignorant of national issues and bubble causes. But then again, we know another ignorant fool from Texas, don't we?
Yes we do>>>>>>Ron Paul
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