Tuesday, September 30, 2008

Powerline humiliated by Krugman

Powerline is a notorious anti-rational right wing megaphone. Paul Krugman recalls one of their attacks on a column he wrote 3 years ago ...
Bubble memories - Paul Krugman - Op-Ed Columnist - New York Times Blog

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."
A cold dish for Powerline.

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.

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