Bubble memories - Paul Krugman - Op-Ed Columnist - New York Times BlogA cold dish for Powerline.
Calculated Risk, in a discussion of home price declines, links to my three-year-old analysis, That Hissing Sound...
... if you google the article, high on the list you find this delightful screed from Powerline, which says that I was just looking for something to complain about amidst the Bush Boom, and concludes:
"[T]here is little reason to fear a catastrophic collapse in home prices.
Krugman will have to come up with something much better, I think, to cause many others to share his pessimism."
Update: Re-reading the article, I recognized it immediately. It's good, but Krugman basically says the bubble is on the coasts, not in "flatland". By which he meant, say, Minnesota. It's true we haven't lost 70% of the value of our home, but last I looked we were down at least 20% from the peak (I don't look too often). So, if anything, he understated the problem. He also didn't imagine that the entire finance sector was going to implode.