Thursday, May 06, 2010

University of Chicago economics professor Casey Mulligan denies there was a housing bubble

Some economists trip all over themselves to prove that bubbles can't happen.

Update: Dean Baker points out more flaws in Professor Mulligan's reasoning.


  1. Did you see all of the foreclosures in today's washington post classified section? Here comes all of that shadow inventory. Sweet price declines!

  2. I liked it more last year when there were 30% more foreclosures on a YOY basis.

  3. The percentage of American single-family homes with mortgages in negative equity rose to 23.3 percent in the first quarter from 21.4 percent in the fourth quarter, according to the Zillow Real Estate Market Reports.

    U.S. home values in the first quarter were down 3.8 percent year-over-year and down 1 percent quarter-over-quarter, to $183,700, according to the Zillow Home Value Index.

    It was the 13th consecutive quarter of year-over-year declines