Paul Krugman from Princeton University predicts the biggest housing bust in history.
Duration : 0:5:56
Krugman on the US housing bubble
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Paul Krugman from Princeton University predicts the biggest housing bust in history.
Duration : 0:5:56
October 27th, 2009 at 7:37 pm
~2:54 – “the …
~2:54 – “the foreign debt is in dollar. That’s the safety valve.”
Well, the safety valve is starting to malfunction. The euro, yen, real, etc are replacing the USD as the reserve currency and therefore the amount of money that will be going into US sovereign debt.
It’s funny how Krugman ‘predicted’ the housing bubble – even though he called for it. It’s like he’s often so close, yet keeps missing a couple key points which result in problems down the road.
October 27th, 2009 at 7:37 pm
Krugman wanted a …
Krugman wanted a bubble after 2001… in fact he wants one after 2009 too
October 27th, 2009 at 7:37 pm
Krugman actually …
Krugman actually advocated a housing bubble after the 2001 recession. he’s full of it.
October 27th, 2009 at 7:37 pm
Beginning of video …
Beginning of video the host “more evidence today on increasing weakness on the housing market.” Schiff called it back in 2002, its here on youtube.
October 27th, 2009 at 7:37 pm
lol you know …
lol you know Krugman just predicted the housing bubble in this video right? As did Schiff, who believes the opposite of Krugman, in other videos. People need to realize it’s possible that two different sides can both be right. Something as complex as the economy probably doesn’t only have one way of working.
October 27th, 2009 at 7:37 pm
World Factbook info …
World Factbook info, California as an independent state, it would have had the 10th largest economy in the world in 2007.
July 09 California #1 foreclosures at 108K
U.S. 360,000 for 1 month!
Go To: Google maps, select REAL ESTATE @ right options box. Check FORECLOSURES, zip code 91739 and watch the search area w/PINS of homes in foreclosure. MINDBLOWING! zip 91739 the Inland Empire. Ground zero
CA CML RE @ 30% vacancy rate! 5 yr bloodbath more at: CaliforniaRE2009 blogspot
October 27th, 2009 at 7:37 pm
Paul Krugman …
Paul Krugman predicted the housing meltdown back when Neo-Hooverites like Larry Kudlow and the Faux News GOPers were still crowing about the “Bush Boom”.
October 27th, 2009 at 7:37 pm
“Bushies”? Really …
“Bushies”? Really dedicated to the science of economics there. Don’t smell any political influence to his world view do we?
October 27th, 2009 at 7:37 pm
The problem is …
The problem is fractional reserve lending.
October 27th, 2009 at 7:37 pm
He just said it was …
He just said it was at “good” for the “economy”. He did not said it was the best. Obviously if you have to choose between building roads or destroying and repairing again and again… Did it make you feel bright by pointing that out? I could argue with you that killing people (case of Pinochet) is “good” for the “economy”….
October 27th, 2009 at 7:37 pm
Yes, and that is …
Yes, and that is what I want to come to, then you are not really looking at desire or demand, you need to go to purchasing power.
October 27th, 2009 at 7:37 pm
demand from desire …
demand from desire have different meanings in economics. Economists take for granted that their use of “demand” implies a desire and an ability to purchase, not just a desire. So no, demand is not infinite.
October 27th, 2009 at 7:37 pm
What is a ” …
What is a “conservative” economist? Bush employed keynesian economics, which is the norm for the Republicans.
Austrian economists are the opposite of keynesians, and they weren’t saying anything close to Krugman.
October 27th, 2009 at 7:37 pm
Clearly, since it’s …
Clearly, since it’s discussing impending mid-term elections.
October 27th, 2009 at 7:37 pm
This is hardly …
This is hardly germaine. He was talking about handling a pending recession post 9/11. Far more conservative economists thought the same thing.
October 27th, 2009 at 7:37 pm
Demand is not …
Demand is not infinite, and never has been. Demand is a function of variables that yield a demand curve that shows the relationship between the price of the good vs the quantity demanded. At a price of 0, the quantity demanded may approach infinity for some goods.
October 27th, 2009 at 7:37 pm
Haha! Yeah, well …
Haha! Yeah, well his area of expertise, which he got his “Nobel” price award from (it is given out by Svenska Riksbanken, Alfred Nobel had nothing to do with it, he didn’t think there were any legitimate discoveries to make in that field and didn’t consider it a real science) is in economics of scale, so he might have missed the broken window lesson in class, or just skipped it.
Classical laissez-faire liberalism though is the purest form of capitalism.
October 27th, 2009 at 7:37 pm
He argued that 9/11 …
He argued that 9/11 was actually in fact good for the economy claiming we’d spend more on repairing things. Go back to the broken window fallacy, Krugman. This guy is a liberal trying to spin his views to fit economics. When it’s well documented that economics and liberalism don’t mesh well.
October 27th, 2009 at 7:37 pm
“Economic policy …
“Economic policy should encourage other spending to offset the temporary slump in business investment. Low interest rates, which promote spending on housing and other durable goods, are the main answer.”
Krugman in an interview in 2001.
October 27th, 2009 at 7:37 pm
It was leftist …
It was leftist policies of “affordable housing” that caused this crisis. Keynesians like Krugman need to listen to the Austrian school that predicted these boom and busts.
October 27th, 2009 at 7:37 pm
is this really from …
is this really from 2006?
October 27th, 2009 at 7:37 pm
bubblicious
bubblicious
October 27th, 2009 at 7:37 pm
You don’t think the …
You don’t think the Bush administration had anything to do with the bubble? Are you a moron? Bush and Greenspan (and greenspan and clinton, and greenspan and bush sr) blew up a credit bubble so big that it had to go somewhere. Then there is the policy of making bad loans which was pushed by the Bush administration. To say Bush didn’t affect it is just retarded. And he likes Paulson. OMG.
across the board tax cuts are what was needed, not just for the rich but you have to cut spending.
October 27th, 2009 at 7:37 pm
There was not a …
There was not a tech bubble in the 90’s and there was not a housing bubble in the 0’s, there was a credit bubble that ran for 20+ years and that is the bubble that really burst and that is why the cash injections are so bad. By injecting the economy and banks with all this money, we have simply reinflated the bubble. As of yet it has not made it into the economy but when it does it’s going to be consumer price inflation. There is way too much money chasing far too few goods.
October 27th, 2009 at 7:37 pm
“added demand”
He …
“added demand”
He seems to have his economics backwards. Demand is infinite. We all want things, we just can’t afford it.