Dean Baker
Dean Baker
Dean Bakeris an American macroeconomist and co-founder of the Center for Economic and Policy Research, with Mark Weisbrot. He has been a senior economist at the Economic Policy Institute and an assistant professor of economics at Bucknell University. He has a Ph.D. in economics from the University of Michigan...
best creation gives growth home jobs level million next optimistic percent prices scenario year
The optimistic scenario gives you about 2 million jobs next year -- about 180,000 a month. If I had to make my best bet, I'd say we'll have level home prices and growth of about 1.5 percent for the year. There'll be job creation of about 80,000 or 90,000 a month.
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There has never been a run up in home prices like this.
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The problem is that few people recognize it for the gamble that it is.
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Does he want to see it burst on its own, or is it appropriate for the Fed to move to deflate asset bubbles?
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It's just prudent to have a chemical safety program, ... We don't want to have a sterile leaning environment, we want kids to have a rich learning environment while keeping them safe, that's the same issue every school faces.
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They can't continue to spend beyond their income indefinitely. If people are building up large amounts of debt, you reach a point where they can't continue.
across clearly evidence strong
It's clearly very strong across the board. There's no evidence of any downturn at this point.
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We've backed ourselves into a very dangerous situation. The economy is dependent on everyone consuming like crazy. If everyone heard my diatribe and said, 'Yeah, we better start saving,' the economy would go into a recession.
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bubble comparable dangers economy faces greater housing levels market stock today
With the housing bubble now having generated comparable levels of unsustainable wealth, the economy faces even greater dangers today than it did when the stock market crashed.
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Until the psychology starts to shift or interest rates jump up, the market will probably stay strong, ... So far we haven't seen that. We've had a lot of stories on housing bubbles lately. Maybe that will affect the psychology.
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I think their intention is to get people who are loyal and that does raise problems. It's clear that they're looking at this as a sales position.
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When you see it increasing quarter after quarter, there seems to be something going on here. We're building more homes than are being filled.
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Normally when you talk about housing bubbles bursting, you're talking about a specific local market. But we've never had a nationwide run-up in home prices like this. I don't think it's realistic to think the decline won't also be national. I think a 15 percent nationwide decline is very plausible. In many bubble areas, could be looking at 20-25, maybe 30 percent declines.