WaveRyder wrote:Sludge Factory wrote:Go Beavers wrote:Here's and article from Krugman predicting the bust in 2005:
And here's one from business week in 2004:
Both missed on the fallout after the bust, though. But the point is, people saw it coming. Me personally, I made 55% on a house I owned for 5 years. You know when something like shelter costs are unsustainable, then something's going to give.
Whether one blames the private sector or the government about the bust only reveals that individuals bias. You seem to blame the government. I think it's interesting how Fannie/Freddie blame has crept into conservative dialogue. It seems like that was generated in order to put more fault for the recession on the Democrats.
You are right in that I blame the government for these bubbles. It is because ever since the government better got a hold of things in 1913, and continues to distort the natural workings of the market, that our economy has been far more rocky than it was in previous times. This is especially true in modern times.
The last part of your comment I find interesting in that Ron Paul, a Republican, was putting fault on Fannie/Freddie before the recession. As a Republican, it didn't matter if it was conservatives or liberals who listened to him and supported his position on this. What mattered was that it should have been supported before things escalated the way they did. As you said yourself, there were plenty of signs showing that the housing market was on an unsustainable path of growth. Unfortunately, Congress decided that this wasn't something worth debating even though Ron Paul was attempting to warn the rest of them about it.
If, as you say, the conservative dialoge is now using this to solely blame the Democrats, I do not defend that. I say get them a mirror so they can see where the other half of the problem came from, but to keep in mind that Ron Paul was trying to do something about this before it happened and that he blames all of Congress regardless of party affiliation. To discredit him for this is disingenuine and only points out ones own individual bias.
it's pretty easy to tell when people toe the party line.....am i right sludge factory?
Haha, yeah. It is especially easy for me to pick up on it sometimes because I used to be one who was guilty of doing so myself from time to time before I had the power of the internet to get my news that way. Now I don't give a fuck what party you are from. I'm skeptical until you have actually proven yourself to not be a charlatan.