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Re-writing the History of the Housing Bubble

By Patrick   Follow   Wed, 14 Nov 2012, 5:50pm   546 views   5 comments
In Menlo Park CA 94025   Watch (0)   Share   Quote   Permalink   Like   Dislike  

http://www.cepr.net/index.php/op-eds-&-columns/op-eds-&-columns/re-writing-the-history-of-the-housing-bubble-and-the-economic-crisis

The story of the housing bubble is an incredible tragedy. The collapse of the bubble has wreaked havoc on the lives of tens of millions of people by leaving them or family members unemployed, destroying savings and costing millions their homes.

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1. justme Follow Befriend (2) 33 threads 3,460 comments

   1   7:26pm Wed 14 Nov 2012   Share   Quote   Permalink   Like   Dislike   Dean Baker is good. It is definitely true that NAR/Realtors, bankers and various other vermin are busy trying to re-write the history of the great housing bubble.

2. C Boy Follow Befriend 1 threads 208 comments Arlington, TX

   2   6:23am Thu 15 Nov 2012   Share   Quote   Permalink   Like   Dislike   Greenspan didn't see it, therefore no one could.

3. robertoaribas Follow Befriend (23) 55 threads 3,810 comments Scottsdale, AZ robertoaribas's website

   3   6:39am Thu 15 Nov 2012   Share   Quote   Permalink   Like   Dislike   I started writing about the bubble in 2004. Mostly on zillow, and various other blogs... I sold most of my homes in 2004- 2005, and put the money into cd's. It didn't seem that hard to see coming, but prices did keep going up for another year after I sold, I took a lot of static from everyone I knew during that year!

4. CDon Follow Befriend (1) 220 comments

   4   7:04am Thu 15 Nov 2012   Share   Quote   Permalink   Like   Dislike   justme says Dean Baker is good. It is definitely true that NAR/Realtors, bankers and various other vermin are busy trying to re-write the history of the great housing bubble. Dean Baker is an interesting case study. He was worried enough that he sold in 2004 and started renting, hoping to buy back after the bubble burst at much lower prices. Unfortunately for him, he was living in DC proper - the land of perpetual money printing. Thus prices moved much higher still in 05 and 06 while he waited, renting. From 2006-2009 prices did crater, but only in the DC exurbs and some low end suburbs. In DC proper where he wanted to live, they only fell (roughly) -10% - basically going back to 2005 prices. In late 2009 he capitulated - buying in DC at prices even higher than those he saw when he sold in 2004. http://latimesblogs.latimes.com/money_co/2009/07/hot-housing-market-no-but-dean-baker-bought-a-house.html

5. David Losh Follow Befriend (2) 8 threads 1,138 comments Seattle, WA David Losh's website Premium

   5   8:21am Thu 15 Nov 2012   Share   Quote   Permalink   Like   Dislike   Protected   CDon says basically going back to 2005 prices. I think the bubble was pretty easy to see, but I thought we would inflate our way out of it, until I saw what had happened in Europe, and what's happening in South America right now. There's no end to the bubble until it's all used up. Governments have done everything they can to prop up housing, or the value of those housing unit assets, but there must be a point where it hits a brick wall. I never thought that five years after 2007 we would be in basically the same place as when the bubble was evident.