Friday, June 04, 2010

Paul Krugman on the housing bubble

Are politicians responsible? Paul's answer.


  1. A pause on the way down.

  2. Krugman is disingenuous to say that the subprime bubble was driven by originators not covered by the CRA. The bubble wouldn’t have gone very far without the secondary market to inflate it. The graph Krugman doesn’t show is the one that shows the percentage of bad loans that were purchased by the GSE’s and other government entities. That percentage would represent the portion of the bubble created by the “libruls”.
    Once Krugman steps outside of his ultra-narrow field of expertise, half of his analysis is faulty and half is dishonest.
    Conscience of a liberal, indeed.

  3. Rebar,

    Do you happen to have that graph? Because Krugman actually showed us his facts. You've just kind of implied that they exist someplace. It makes for a stronger argument when you show people what you're talking about rather than assuring them that it's true.