So here’s the bottom line: yes, northern Virginia, there is a housing bubble. (Northern Virginia, not Virginia as a whole. Only the Washington suburbs are in the Zoned Zone.) Part of the rise in housing values since 2000 was justified given the fall in interest rates, but at this point the overall market value of housing has lost touch with economic reality. And there’s a nasty correction ahead.
The fact that he (partially) acknowledged the existence of the problem, once it was well underway, doesn’t change the fact that he actively advocated the policies that caused the problem.
Paul Krugman?
My experience is that Paul Krugman is one of those people with whom you disagree at your peril.
If by “peril” you mean being censored from the comments section of his blog....
If you disagreed with him about long-term interest rates on T-bills, and you bet on that belief, you lost a lot of money.
And if you agreed with him about the housing market and bought any real estate a few years back, then you’re probably underwater right now.
Even if you sold in 2006?
I don’t know if that link is gated or not.
The fact that he (partially) acknowledged the existence of the problem, once it was well underway, doesn’t change the fact that he actively advocated the policies that caused the problem.
Should the Federal Reserve have refrained from lowering interest rates in 2001?