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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