Australia’s Coming Housing & Credit Bust

May 22, 2010 · Posted in Global Economics · Comment

The other day I pointed out that Australia, among other countries, has a big housing bust on her doorsteps.

This week I found some more info on it on Mish’s blog here and here.

Well worth a read, especially if you live in Down Under! :)

Tags: australia, housing, housing bubble

Krugman Asked for Housing Bubble

June 17, 2009 · Posted in General Economics · Comment

In 2002 Paul Krugman said we needed a housing bubble. It is not surprising that he would espouse such nonsense, but just in case there are still people out there listening to this guy, please consider Dubya’s Double Dip?:

The basic point is that the recession of 2001 wasn’t a typical postwar slump, brought on when an inflation-fighting Fed raises interest rates and easily ended by a snapback in housing and consumer spending when the Fed brings rates back down again. This was a prewar-style recession, a morning after brought on by irrational exuberance. To fight this recession the Fed needs more than a snapback; it needs soaring household spending to offset moribund business investment. And to do that, as Paul McCulley of Pimco put it, Alan Greenspan needs to create a housing bubble to replace the Nasdaq bubble.

… great how the internet doesn’t forget.

Tags: housing bubble, housing market, paul krugman