Friday, 3 October 2008

Bubble troubles

Via S&M I came across this ace post which helpfully details US economic commentators who denied that there was a housing bubble. One name that sticks out like a sore thumb is Kevin Hassett, who is based at the right-wing think tank the American Enterprise Institute.

In addition to not buying that there was a housing bubble he was also famously co-author of the confidently-titled Dow 36,000. Published at the end of the 90s, this was his prediction for the level of the Dow within next few years (based on the idea that we had entered new territory). It was kind of the mirror to Irrational Exuberance, and I think we can fairly say Shiller won that one (Dow today is around 10,500). If you're sad enough, have a read through some of the comments on Dow 36,000 on US Amazon.

But there's another reason why his name sticks out - he's senior economic adviser to John McCain.

2 comments:

crossland said...

Been a fan of your blog since Labour outlook linked to it.

O/T but I'm currently trying to understand what the tory proposals for B+B , NR are.
Media reports seem very vague beyond "its like administration but different, the Boe are in charge but Tax payers money is not involved"

are you any wiser ?

Tom P said...

Hi crossland

I've got to be honest and say I haven't looked at the Tory proposals. I probably ought to.