A great clip. Fed chairman Ben Bernanke completely missing the housing crash in front of him and Paul Krugman just before the crash admitting he was clueless.
Hilarious. Krugman being clueless, as usual, says it all. He has to be embarrassed that a Texas doctor knows far more about economics and has a far better track record than him!
These Bernake quotes from 2005 denying that there is a Housing Bubble and that there is a housing bubble and that we won't have a crash in housing prices are just great. Krugman saying in 2007 (!) that he wasn't sure if there would be a recession and that no one knew shows exactly how clueless the guy is.
How that guy or Bernake have the lack of shame to accuse anyone of being wrong about economic predictions or econ knowledge is beyond me. They are both about as credible to economics as Bill O Reilly is to journalism.
Krugman taking on Wenzel was a huge, huge mistake. He really should have ignored him because now a lot more people will get to see stuff like the above embarrassing clip showing how clueless Krugman and the Keynesians were about the housing bubble.
I was thinking just the other day how Obama/Newt/Romney have to really, really hate Youtube and how easily it catches them in blatant lies, but now we will have to add Krugman and Bernake types to that list who would shut down youtube if they could.
It makes Krugman claiming he called the economic collapse all the more hilarious when in 2007 he said he didn't know.
Schiff's analysis of the housing market in this video had nothing to do with Austrian economics. The people who were laughing at him probably did agree with what he was saying but had an interest in keeping the bubble going so they were arguing against him. The 8 trillion dollar housing bubble in 2006 was apparent to everyone. It's one of the reasons the Republicans lost the House and Senate in Nov 2006.
When he did use Austrian economics to make a prediction, it was dead wrong. He predicted that the dollar would crash in 2009 and it got stronger. Look up the WSJ article titled ""Right Forecast By Schiff, Wrong Plan?"
So the title of the video "Austrians vs Keynesians" is misleading.
Watch Schiff's 2006 mortgage bankers speech. He tells 3000 mortgage bankers about sub prime and how he was shorting it. I asked him if anyone in the audience wanted to get in on the short. Nobody did.
Schiff analysis of the real estate bubble has " everything to do" with ABCT. Long before the real estate bubble, Peter Schiff had called the tech bubble and its subsequent crash that was created by artificially low rates of interest and easy money. The same paradigm was behind the real estate bubble and, as a student of "Mises", he saw how the government was mismanaging the economy by manipulating the interest rate once more to create an illusion of prosperity with the real estate bubble. So to say that Schiff did not use Austrian economics is beyond ridiculous. He is an Austrian economist and has admitted it himself countless time.
Funny how the Krugman trolls have just vanished...43 and 25 comments on the previous two posts, and on this one, 11...when they get showed up with video footage that can't be spun into a lie, they are suddenly silent.
To be fair to Krugman, he did recognise that there was a housing bubble (he wrote an NYT column about it in 2005) but – as far as I'm aware – shied away from offering any solutions to it.
And the fact that he couldn't see a looming career-defining depression in late 2007?! That's like a quarterback flunking his Super Bowl appearance.
It's a lot easier to make points when you take points out of context...
Apologies for the somewhat inflammatory title of this video - I didn't name it... It does make the point though... https://www.youtube.com/watch?v=fzDnCqqEzhY&feature=related
I recall a few Krugman articles discussing a housing bubble around 2005. See "That Hissing Sound" from August 8 2005 in an NYT editorial.
This is an article from December 1 2006 in which Krugman points to the bond market to suggest economic stress in 2007: http://www.nytimes.com/2006/12/01/opinion/01krugman.html?n=Top%2fOpinion%2fEditorials%20and%20Op-Ed%2fOp-Ed%2fColumnists%2fPaul%20Krugman
Another Krugman opinion piece, also in the NYT, called "Intimations of Recession" discussed the relationship between home sales, recession, and remaining governmental countercyclical capacity. It's in the August 7 2006 edition.
Paul Krugman: As Paul McCulley of PIMCO remarked when the tech boom crashed, Greenspan needed to create a housing bubble to replace the technology bubble. So within limits he may have done the right thing. But by late 2004 he should have seen the danger signs and warned against what was happening; such a warning could have taken the place of rising interest rates. He didn’t, and he left a terrible mess for Ben Bernanke.
Austrianism vs Keynesianism is just another silly dialectic, aimed at obscuring the real problem: the interest we pay on all the debts. Austrianism with its Gold Standard will maintain private control of the money supply, continuing the silly wealth transfer. Gold has been monopolized for centuries.
Hilarious. Krugman being clueless, as usual, says it all. He has to be embarrassed that a Texas doctor knows far more about economics and has a far better track record than him!
ReplyDeleteThese Bernake quotes from 2005 denying that there is a Housing Bubble and that there is a housing bubble and that we won't have a crash in housing prices are just great. Krugman saying in 2007 (!) that he wasn't sure if there would be a recession and that no one knew shows exactly how clueless the guy is.
ReplyDeleteHow that guy or Bernake have the lack of shame to accuse anyone of being wrong about economic predictions or econ knowledge is beyond me. They are both about as credible to economics as Bill O Reilly is to journalism.
Krugman taking on Wenzel was a huge, huge mistake. He really should have ignored him because now a lot more people will get to see stuff like the above embarrassing clip showing how clueless Krugman and the Keynesians were about the housing bubble.
"Will we have a recession? The truth is I don't know. No one does." - Krugman in 2007
ReplyDeleteI was thinking just the other day how Obama/Newt/Romney have to really, really hate Youtube and how easily it catches them in blatant lies, but now we will have to add Krugman and Bernake types to that list who would shut down youtube if they could.
ReplyDeleteIt makes Krugman claiming he called the economic collapse all the more hilarious when in 2007 he said he didn't know.
You should really get Bob Murphy to write out something on this whole spat for LRC or Mises.org. His Krugman rebuttals are always fan-freakin-tastic.
ReplyDeleteWhen Peter Schiff is 'on' -- to the point, and not belaboring -- he is really, really good!
ReplyDeleteHave some more fun laughing at Keynesians!
ReplyDeletehttp://www.youtube.com/watch?v=6XbG6aIUlog
Plus you gotta love Tom Woods.
Schiff's analysis of the housing market in this video had nothing to do with Austrian economics. The people who were laughing at him probably did agree with what he was saying but had an interest in keeping the bubble going so they were arguing against him. The 8 trillion dollar housing bubble in 2006 was apparent to everyone. It's one of the reasons the Republicans lost the House and Senate in Nov 2006.
ReplyDeleteWhen he did use Austrian economics to make a prediction, it was dead wrong. He predicted that the dollar would crash in 2009 and it got stronger. Look up the WSJ article titled ""Right Forecast By Schiff, Wrong Plan?"
So the title of the video "Austrians vs Keynesians" is misleading.
Watch Schiff's 2006 mortgage bankers speech. He tells 3000 mortgage bankers about sub prime and how he was shorting it. I asked him if anyone in the audience wanted to get in on the short. Nobody did.
ReplyDeleteSchiff analysis of the real estate bubble has " everything to do" with ABCT. Long before the real estate bubble, Peter Schiff had called the tech bubble and its subsequent crash that was created by artificially low rates of interest and easy money. The same paradigm was behind the real estate bubble and, as a student of "Mises", he saw how the government was mismanaging the economy by manipulating the interest rate once more to create an illusion of prosperity with the real estate bubble. So to say that Schiff did not use Austrian economics is beyond ridiculous. He is an Austrian economist and has admitted it himself countless time.
ReplyDelete"The 8 trillion dollar housing bubble in 2006 was apparent to everyone"
ReplyDeleteExcept Bernake and Krugman, who both either thought there would be no housing crash or weren't sure.
Funny how the Krugman trolls have just vanished...43 and 25 comments on the previous two posts, and on this one, 11...when they get showed up with video footage that can't be spun into a lie, they are suddenly silent.
ReplyDeleteThanks for posting - this needs to go viral!
ReplyDeleteTo be fair to Krugman, he did recognise that there was a housing bubble (he wrote an NYT column about it in 2005) but – as far as I'm aware – shied away from offering any solutions to it.
ReplyDeleteAnd the fact that he couldn't see a looming career-defining depression in late 2007?! That's like a quarterback flunking his Super Bowl appearance.
It's a lot easier to make points when you take points out of context...
ReplyDeleteApologies for the somewhat inflammatory title of this video - I didn't name it... It does make the point though...
https://www.youtube.com/watch?v=fzDnCqqEzhY&feature=related
And, a bit more amusingly...
Keynes vs Hayek rap videos
http://www.youtube.com/watch?v=d0nERTFo-Sk
http://www.youtube.com/watch?v=GTQnarzmTOc
I recall a few Krugman articles discussing a housing bubble around 2005. See "That Hissing Sound" from August 8 2005 in an NYT editorial.
ReplyDeleteThis is an article from December 1 2006 in which Krugman points to the bond market to suggest economic stress in 2007: http://www.nytimes.com/2006/12/01/opinion/01krugman.html?n=Top%2fOpinion%2fEditorials%20and%20Op-Ed%2fOp-Ed%2fColumnists%2fPaul%20Krugman
Another Krugman opinion piece, also in the NYT, called "Intimations of Recession" discussed the relationship between home sales, recession, and remaining governmental countercyclical capacity. It's in the August 7 2006 edition.
ReplyDeletePaul Krugman: As Paul McCulley of PIMCO remarked when the tech boom crashed, Greenspan needed to create a housing bubble to replace the technology bubble. So within limits he may have done the right thing. But by late 2004 he should have seen the danger signs and warned against what was happening; such a warning could have taken the place of rising interest rates. He didn’t, and he left a terrible mess for Ben Bernanke.
ReplyDeletehttp://krugman.blogs.nytimes.com/2006/10/30/credit-where-credit-is-due/
Austrianism vs Keynesianism is just another silly dialectic, aimed at obscuring the real problem: the interest we pay on all the debts.
ReplyDeleteAustrianism with its Gold Standard will maintain private control of the money supply, continuing the silly wealth transfer. Gold has been monopolized for centuries.
http://realcurrencies.wordpress.com/2012/01/12/the-inflation-vs-deflation-dialectic/