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by grandalf 6205 days ago
I keep wondering what bubble they will create next to offset the burst of the housing bubble... any guesses? I am thinking it will either be another housing bubble (housing starts are already up 17% this quarter) or maybe a green energy bubble?
2 comments
DenisM 6205 days ago
Certainly the alt-energy bubble. Read this, it's old from 01/2008 but still relevant:

http://seattlest.com/2008/01/17/the_next_market.php

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grandalf 6204 days ago
not sure why this was modded down. The bubble was due to perverse incentives to invest in housing debt (massive mortgage interest deductions, implicit underwriting of fannie/freddie, etc.)

Based on many quotes that are starting to surface from Paul Krugman, there were a lot of serious economists who thought that creating massive incentives for investment in the housing sector was a good idea:

http://blog.mises.org/archives/010153.asp

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