Claim - "everyone knew housing collapse would come" - huh?

[djinwa]

Someone I know was downplaying Ron Paul's warnings about the housing collapse saying everyone knew they would come, they just didn't say anything. To which I asked if they didn't say anything, how do you know they knew?

Anyway, I believe I've read that Bernanke and others were promoting housing early last decade. Any more info or references for that? I'm not having much luck googling.

I do know Bush was promoting housing. I doubt he knew it would collapse. I assume he was listening to advisers.

[roho76]

Someone I know was downplaying Ron Paul's warnings about the housing collapse saying everyone knew they would come, they just didn't say anything. To which I asked if they didn't say anything, how do you know they knew?

Anyway, I believe I've read that Bernanke and others were promoting housing early last decade. Any more info or references for that? I'm not having much luck googling.

I do know Bush was promoting housing. I doubt he knew it would collapse. I assume he was listening to advisers.



There's a T-shirt in there somewhere.

[Feeding the Abscess]

There are YouTube videos of Bernanke saying the housing market is strong in 2007 and 2008; Paulson saying he's never seen an economy in stronger shape, etc. McCain and other Republicans were saying the fundamentals of the economy were strong in the primaries... complete revisionist history on that person's part.

[heavenlyboy34]

There are YouTube videos of Bernanke saying the housing market is strong in 2007 and 2008; Paulson saying he's never seen an economy in stronger shape, etc. McCain and other Republicans were saying the fundamentals of the economy were strong in the primaries... complete revisionist history on that person's part.
qft.

[specsaregood]

Herman Cain missed it.
http://www.ronpaulforums.com/showthread.php?299849-HERMAN-CAIN-IN-2005-quot-There-is-no-housing-bubble.-Don-t-question-Alan-Greenspan.
http://www.mrc.org/bmi/commentary/2005/Commentary_The_Media_Say_the_Economy_Is_Horrible_S o_It_Must_Be_True.html


By Herman Cain
Wednesday, August 17, 2005 10:00 AM EDT

I wish that was all. Its not. You could write a book just on how poor the coverage has been of the alleged housing bubble. The media have been foretelling a massive bust in housing prices for months now. On May 19, ABCs Elizabeth Vargas said: The run up in housing prices is now beginning to look something like the boom in Internet stocks, and we know what happened there. That kind of ignorance makes homeowners fear that their most expensive possession could turn worthless overnight.

That wont happen. No matter how much the media compared Bush to Herbert Hoover last year, this is not the Great Depression. Now theyve given up on that failed comparison, but their coverage of the president has gotten worse.

[kah13176]

http://www.youtube.com/watch?v=MnekzRuu8wo

http://3.bp.blogspot.com/_tR7H3y4OuqQ/TMhanRBPrSI/AAAAAAAABIc/uGu-m5vqF4g/s1600/aii.jpg

[djinwa]

Okay, I searched on youtube and found this,

http://www.youtube.com/watch?v=Kowdi1mM-i8

So there were quite a few predicting a problem, but how many politicians?

[Brian4Liberty]

Find some old tubes of Kudlow vs. Schiff.

[Cutlerzzz]

I've noticed a growing trend of people now claiming that they(and everyone) predicted the recession as well. Of course, anyone who remembers the Stock Market crash of 08 when it was declared "an inherent flaw of capitalism nobody could have foreseen", or before that when we were creating a "home ownership society" supported by both parties establishments and the Federal Reserve. The video of Ben Bernanke being wrong was already referenced to, but I'll post it anyways. "Peter Schiff was right" videos will always show what CNBC, Fox Business, and the other financial networks were thinking.


http://www.youtube.com/watch?v=9QpD64GUoXw

Here are some other famous economist(that generally represent the establishment) that were wrong.


Alan Greenspan.


http://www.youtube.com/watch?v=PWen53eqmJo


Art Laffer


http://www.youtube.com/watch?v=lYkFYdLTTw8


Robert Reich on "Are we entering a depression?" His answer? "Probably not".

http://robertreich.org/post/257309385


Lawrence Summers was wrong

http://www.newsweek.com/2009/02/20/the-reeducation-of-larry-summers.html


Robert Lucas in his 2003 address to the American Economic Association

"The Central Problem of Depression prevent has been solved".


In his 2008 paper "The state of macro affairs", Oliver Blanchard, head of the IMF, declared(literally) "The state of macro is good".


I could keep digging up articles of famous economist missing the recession up until September 2008(a year after it started) or of economist questioning if there will either be a mild recession or just a small down turn. But I won't because this took 25 minutes.

Remember, the only issues anyone talked about for most of the decade before the Stock Market crash were "Should the US leave Iraq in 3 years or 10 years?" or "How to lower the price of energy?". Most of the economist I can remember reading back then believed that everything was fine, and most of the minority who believed housing was in a bubble believed that it would only be a minor recession. Very few predicted the crash.

[musicmax]

Anyone looking at demographics could see the housing bubble. Lots of boomers buying big houses -> lots of boomers downsizing as they retire -> no baby busters to soak up that inventory.

[kah13176]

Anyone looking at demographics could see the housing bubble. Lots of boomers buying big houses -> lots of boomers downsizing as they retire -> no baby busters to soak up that inventory.

It's not just that. The government was really putting a lot of pressure on banks by pushing the Community Reinvestment Act 1977, which basically states that banks can't deny loans to risky borrowers. Look it up.

So you saw a load of first-time home buyers and people on the low end of the economic spectrum looking to buy houses way outside their pay grade.

Hell, just compare median wages with median housing prices and even median car prices just before the collapse. People wanted instant gratification in their consumerist craze and got rightfully stung.

[MJU1983]

A couple of good ones...



http://www.youtube.com/watch?v=541bajR4k8g


http://www.youtube.com/watch?v=EgMclXX5msc

Worth a look: Rollback: Repealing Big Government Before the Coming Fiscal Collapse by Andy Duncan (http://lewrockwell.com/orig11/duncan-a3.1.1.html)



http://www.youtube.com/watch?v=JcAX0oX9ANU