Why Mainstream Economists Deny Housing Bubbles Until After They Implode – Which They ALWAYS Do
Those few warning of a housing crash are “scaremongers” – now playing out in Australia.
by Lindsay David
WolfStreet.com
October 20, 2015
Since the end of the Second World War, there have been more than 40 housing bubbles across the globe, and they all ended with a hard landing. One of the housing bubbles already written in the history books as one of the greatest of all time was the Irish housing bubble of the last decade.
And when you look through these history books (or YouTube for better entertainment), you find a remarkable trend between those who identified or failed to identify the forthcoming collapse of their housing bubbles.
And just as concerning for Australia’s case, it’s the arguments by those who deny the existence of a housing bubble in an attempt to justify the high and rising price of real estate. More specifically I am talking about Australia’s mainstream economists & bankers, politicians, central bankers, construction industry representatives and any other individual whose job it is to spruik the price of property and deny the existence of a housing bubble even when the data states that a housing bubble exists.
On the other hand, those few who argue the existence of a housing bubble always have one issue in mind: the irrational amounts of debt that households accumulate.
Now taking just a few minutes out of your life, watch this classic debate in Ireland between two Irish economists just before its housing market crashed. And ask yourself if the gentlemen sitting on the left (Jim Power) is making any similar arguments to justify the high price of housing in Ireland that the mainstream economists in Australia have been drilling down the throats of Australian society:
The Rest…HERE
