Comments on: Dean Baker, Plunder and Blunder: The Rise and Fall of the Bubble Economy http://stevereads.com/weblog/2009/06/20/dean-baker-plunder-and-blunder-the-rise-and-fall-of-the-bubble-economy/ Books and policy from an endlessly curious perspective Tue, 20 Jul 2010 17:29:01 +0000 hourly 1 http://wordpress.org/?v=3.0.1-beta By: Stephen Laniel’s Unspecified Bunker » Getting all hand-wavy about finance http://stevereads.com/weblog/2009/06/20/dean-baker-plunder-and-blunder-the-rise-and-fall-of-the-bubble-economy/comment-page-1/#comment-6494 Stephen Laniel’s Unspecified Bunker » Getting all hand-wavy about finance Tue, 14 Jul 2009 16:26:36 +0000 http://stevereads.com/weblog/?p=5117#comment-6494 <p>[...] DeanPlunder and Blunder (finished 28 [...]</p> [...] DeanPlunder and Blunder (finished 28 [...]

]]> By: Stephen Laniel’s Unspecified Bunker » Lists of previously-read books http://stevereads.com/weblog/2009/06/20/dean-baker-plunder-and-blunder-the-rise-and-fall-of-the-bubble-economy/comment-page-1/#comment-6436 Stephen Laniel’s Unspecified Bunker » Lists of previously-read books Sun, 28 Jun 2009 17:18:16 +0000 http://stevereads.com/weblog/?p=5117#comment-6436 <p>[...] DeanPlunder and Blunder (finished 28 [...]</p> [...] DeanPlunder and Blunder (finished 28 [...]

]]> By: Paul http://stevereads.com/weblog/2009/06/20/dean-baker-plunder-and-blunder-the-rise-and-fall-of-the-bubble-economy/comment-page-1/#comment-6431 Paul Tue, 23 Jun 2009 15:28:00 +0000 http://stevereads.com/weblog/?p=5117#comment-6431 <p>http://www.paecon.net/PAEReview/issue46/Baker46.pdf</p> http://www.paecon.net/PAEReview/issue46/Baker46.pdf

]]> By: Paul http://stevereads.com/weblog/2009/06/20/dean-baker-plunder-and-blunder-the-rise-and-fall-of-the-bubble-economy/comment-page-1/#comment-6430 Paul Tue, 23 Jun 2009 15:27:30 +0000 http://stevereads.com/weblog/?p=5117#comment-6430 <p>If I recall, the claim is that housing prices did not rise faster than inflation in the 100 years preceding 1995. In the decade following (1996-2006), housing prices rose 70% after adjusting for inflation, leading to an $8 trillion housing bubble.</p> If I recall, the claim is that housing prices did not rise faster than inflation in the 100 years preceding 1995. In the decade following (1996-2006), housing prices rose 70% after adjusting for inflation, leading to an $8 trillion housing bubble.

]]> By: slaniel http://stevereads.com/weblog/2009/06/20/dean-baker-plunder-and-blunder-the-rise-and-fall-of-the-bubble-economy/comment-page-1/#comment-6429 slaniel Tue, 23 Jun 2009 14:22:18 +0000 http://stevereads.com/weblog/?p=5117#comment-6429 <blockquote> <p>I’ve never heard this argument before but it actually makes a lot of sense when you think about it. Does he back this statement up with numbers?</p> </blockquote> <p>Yeah, he does. I don't actually own the book (I got it out of the library), so I can't pull up the numbers right now. If I recall correctly, the guys who made the Case-Shiller Index (their names are Case, and also Shiller) extended their analysis back 100 years, somehow. I'll dig around. If you want to dig too, I'm basically just going to do some historical Case-Shiller hunting.</p> <p>Note also that the claim of no net property-value appreciation is a national average. Property values in Boston and the Bay Area have certainly appreciated. Those in Detroit have not.</p>

I’ve never heard this argument before but it actually makes a lot of sense when you think about it. Does he back this statement up with numbers?

Yeah, he does. I don’t actually own the book (I got it out of the library), so I can’t pull up the numbers right now. If I recall correctly, the guys who made the Case-Shiller Index (their names are Case, and also Shiller) extended their analysis back 100 years, somehow. I’ll dig around. If you want to dig too, I’m basically just going to do some historical Case-Shiller hunting.

Note also that the claim of no net property-value appreciation is a national average. Property values in Boston and the Bay Area have certainly appreciated. Those in Detroit have not.

]]> By: Jamie http://stevereads.com/weblog/2009/06/20/dean-baker-plunder-and-blunder-the-rise-and-fall-of-the-bubble-economy/comment-page-1/#comment-6428 Jamie Tue, 23 Jun 2009 09:57:48 +0000 http://stevereads.com/weblog/?p=5117#comment-6428 <blockquote>Home prices, says Baker, had not risen in real terms in one hundred years; the main allures of homeownership come through forced saving and some tax benefits. So any increase in home prices that exceeds inflation is immediately suspect.</blockquote> <p>I've never heard this argument before but it actually makes a lot of sense when you think about it. Does he back this statement up with numbers?</p> Home prices, says Baker, had not risen in real terms in one hundred years; the main allures of homeownership come through forced saving and some tax benefits. So any increase in home prices that exceeds inflation is immediately suspect.

I’ve never heard this argument before but it actually makes a lot of sense when you think about it. Does he back this statement up with numbers?

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