tag:blogger.com,1999:blog-13164186.post4877299074631373499..comments2024-01-27T19:26:32.604-05:00Comments on Bubble Meter: Flashback 2004: Art Laffer denies the housing bubbleDavidhttp://www.blogger.com/profile/11169148764438565562noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-13164186.post-22339433445783908262008-11-30T23:15:00.000-05:002008-11-30T23:15:00.000-05:00I particularly like the part where Laffer says one...I particularly like the part where Laffer says one shouldn't compare the income from an asset to its price when determining whether the price is reasonable.<BR/><BR/>I'll sum up his entire hogwash argument: because monthly payments were super low (due to negative amortization, pick a pay, no doc loans which are conveniently not mentioned as being the sole reason for such super low payments) and people could "afford" them, there can't be a house price bubble.<BR/><BR/>Of course this completely ignores the unsustainability of the mortgage products being used or the abnorally low rates, and ignores the fact that temporary affordability doesn't = prices are good. Maybe he doesn't realize a car dealer can fit any monthly payment you desire so long as the term is stretched out far enough.<BR/><BR/>I can't believe people with such idiotic views are paid money for them.John Fontainhttps://www.blogger.com/profile/00246801870171720131noreply@blogger.comtag:blogger.com,1999:blog-13164186.post-21999032664719412792008-11-30T19:13:00.000-05:002008-11-30T19:13:00.000-05:00Yeah, Lance tell us how you were wrong. I know you...Yeah, Lance tell us how you were wrong. I know your there, and i'm still here tooAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-13164186.post-65946711078188872222008-11-30T17:18:00.000-05:002008-11-30T17:18:00.000-05:00One of us should take it upon ourselves to attempt...One of us should take it upon ourselves to attempt to contact these famous bubble deniers of yore. I'd love to hear their newest pseudo-intellectual babble on why the sky isn't obviously blue.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-13164186.post-65306456423357921442008-11-30T15:03:00.000-05:002008-11-30T15:03:00.000-05:00Look at how technology companies made up close to ...Look at how technology companies made up close to 35% of the S&P 500 capitalization back early 2000. Look at how the median house was 5 times annual household income back in early 2006. Look at the S&P 500 P/E ratio from 2000 to 2006. Look at the average dividend yield for the S&P 500 in the 1950's to 1970's to the 1980's to present day. <BR/><BR/>Look at the fundamentals now. <BR/><BR/>There are still many areas to be affected such as the San Francisco area housing market.Anonymousnoreply@blogger.com