Friday
Mar252011
Read The NY Fed White Paper That Dismissed The Housing Bubble - Just Before It Burst
Video - Bernanke Was Wrong - July, 2009
Dec. 2004 NY Fed Paper: Are Home Prices the Next "Bubble"?
The Fed got this one completely, 100% wrong. Total FAIL. This December 2004 study of the housing market is a reminder that the same people exerting almost total, unaccountable control over our monetary policy, are the same people who produce studies like this.
This paper has plenty of charts, regression analyses, hedonics and endnotes. All absolutely worthless.
Basic findings:
- A "close analysis of the U.S. housing market" finds little basis for concerns about a steep decline in home prices
- The rise in home prices is driven by fundamentals, not speculation (this time it's different)
- Weaker fundamentals are unlikely to cause home prices to drop steeply on a nationwide basis
- Any decline in home prices is unlikely to have serious ramifications for the broader economy and "is unlikely to plunge the U.S. economy into a recession."
More detail...
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Reader Comments (9)
http://www.activistpost.com/2011/03/feds-finally-recognize-anti-cancer.html
The gov't got this one wrong as well...
Didn't the NY Fed also co-author a piece with MIT explaining that the entire rationale for TARP was nothing but a pack of lies? And didn't that paper confirm the thesis of Minneapolis Fed's Working Paper #666 [I shit you not], which posited that the entire TARP rationale was nothing but a pack of lies?
Does the right hand not know what the left is doing?
More importantly, am I the only one who gives a shit about the rules?
A guy told me in Vietnam Indiana that a local plant's weekly receipt of parts from Tokyo came to a halt, as apparently the plastic + aluminum content was enough to set off U.S. radiation detectors.
Oh, yeah. Things here are grimmer.
We have the same deluded fools in Australia regarding housing - same stupid rubbish - we are different, decline in house prices will not impact the economy, the fundamentals are sound, we have houses that are built differently to those in the US, all sound fundamentals and no speculation, the banks are sound......etc.
OVER THE LINE!