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Housing Tunes: ACME Cheap Credit Vs. Wile E Housing Bubble
Nick Gogerty of Designing Better Futures has come up with another of his highly entertaining and educational videos, this time focusing on a longitudinal comparison of housing prices by geographic area compared to household income. Aside from the obvious inflation in prices during the bubble years, the video should make those in the administration think if another credit bubble is just what this economy needs. The only long-term solution for our economic crisis is not to repeat (continuously) the mistakes of the past, but to focus on improving per capita incomes by whatever micro or macro means available.
Until that occurs, every ensuing "rebound" will be simply yet another asset bubble, each with an increasingly shorter duration, until the mechanisms to reflate the bubble expire. However, if the bubble approach to economics is overturned there will be huge losses for Wall Street and a large percentage of the already decimated banker community will end up collecting unemployment benefits. And neither Larry Summers nor Obama's other closet advisors want that outcome. So you might as well prepare to see a sequel of this chart in 5 years, when the HHI is the same, but the house price amplitude is a multiple of the one exhibited here.
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What the heck is going on in there?? Did the squirrels go on strike?? Site's up. Then it's down. Then it's up but doesn;t work. Then it's down. Then it's up but posts are missing. No Tweet updates.
Guys - we're worried about you.
Did GS hire Sergey back to hack this site and prevent any bearish comments ahead of earnings tomorrow?
What gives?
I'm also fucking terrified they will just blow it out of the water. Kudlow is usually my least favorite duck quacking around CNBC. However, his motto that "even a banker can make money at 0% and 6%" has hung in the back of my mind.