More on the ‘Bubble’ Drones at The Economist Magazine

Scott Sumner responds to the ‘bubble’ drones at The Economist’s Free Exchange blog.  Like Scott, we can only laugh at the evidence The Economist offers for its claim that ‘many people did correctly identify the bubble years before it imploded, including writers at The Economist’.  This is what they said in 2003:

A SURVEY in The Economist in May predicted that house prices would fall by 10% in America over the next four years, and by 20-30% in Australia, Britain, Ireland, the Netherlands and Spain. Prices have since continued to rise…

It’s a bit like ‘predicting’ that tech stock prices would crash…in 1996.  The article was headed ‘What goes up…’, which pretty much sums up The Economist’s model of asset price determination.

posted on 18 January 2010 by skirchner in Economics, Financial Markets, House Prices

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