[lbo-talk] origins of the housing boom

Doug Henwood dhenwood at panix.com
Tue Aug 30 11:46:39 PDT 2011


On Aug 30, 2011, at 11:48 AM, Jordan Hayes wrote:


>> I would summarize my entire argument this way. Suppose you
>> or I traveled back in time to 2005 and got a job writing for
>> the WSJ. We pitch our editor on a story that says (a) housing
>> is hugely overvalued and (b) the major banks will all go bankrupt
>> when house prices collapse.
>
> Plenty of people sounded this warning. Many were rejected or fired. Ask Robert Shiller about it.

That seems to be the case with a lot of bubbles. There are always some prophets of doom. But since there are not profits of doom, no one wants to listen to them.

Doug



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