On Mon, 2009-01-05 at 08:42 -0500, Max Sawicky wrote:
> Krugman recognized Dean's work early and explicitly in his column.

And he also reminds us of the top guns of Obama economics
team past actions speak for themselves:

http://krugman.blogs.nytimes.com/2009/01/03/economists-behaving-badly/
"""Second is the extreme condescension toward Rajan — a pretty serious
guy — for having the temerity to suggest that maybe markets don’t always
work to our advantage. Larry Summers, I’m sorry to say, comes off
particularly badly. Only my colleague Alan Blinder, defending Rajan
“against the unremitting attack he is getting here for not being a
sufficiently good Chicago economist”, emerges with honor."""

For the record:

http://krugman.blogs.nytimes.com/2008/12/26/hoocoodanode-part-a-zillion/
"""Actually, a number of economists said this, not in hindsight, but as
it was happening: people like Dean Baker, Calculated Risk, and yes,
yours truly (I was reading Dean and CR). “These days,” I wrote in August
2005, “Americans make a living selling each other houses, paid for with
money borrowed from the Chinese. Somehow, that doesn’t seem like a
sustainable lifestyle.”

So it wasn’t that people failed to notice the problem. Instead, what
happened was active — and often angry — denial. 
"""

Calculated Risk first article citing 2004 work so well after Baker:

http://www.calculatedriskblog.com/2005/01/housing-prices-asset-bubble.html
"""A similar analysis was performed by the FRBNY Economic Policy Review,
Dec 2004 "Are Home Prices the Next Bubble?" 
Their conclusion: "The marked upturn in home prices is largely
attributable to strong market fundamentals: Home prices have essentially
moved in line with increases in family income and declines in nominal
mortgage interest rates." 
"""

> Dean has a new book out:
> 
> http://www.amazon.com/Plunder-Blunder-Rise-Bubble-Economy/dp/0981576990

Thanks for the pointer,

Laurent


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