Econo-Girl's eagle eye is out for any discrepancies between thought and deed. She has alighted on benighted Bernanake, soon to be Fed chief.
Didn't Bernanke say that he wasn't going to be making extraneous comments about the economy at large, and restrict himself to the topic of interest rates? Already he is commenting that there is NO REAL ESTATE BUBBLE.
He is wrong. Econo-Girl has gone on at length about this topic before, but let her sum it up for you. The median income cannot buy the median-priced house. The rental income from properties as part of a P/E ratio shows that real estate assets are overpriced. Alan Greenspan says that the market is frothy in places, and he called the last bubble. Houses are not investments, they are a place to live (unless you rent out a part of your house).
The important part is BERNANKE IS COMMENTING on things other than THE INTEREST RATE! He isn't even in the new job and he can't resist chatting away about his opinion.
And about his opinion, at least GREENSPAN WAS HONEST. Bernanke is gilding the lily to prevent a storm on the real estate market. Asset glut, indeed.
2 comments:
All this sends my blood pressure into the stratosphere, where the jet aircraft dare to go.
The Lazy One is waiting for a bubble pop so he can afford to buy a place to live.
Don't call yourself the 'Lazy One' call yourself the 'Smart One'. He is so dead wrong it isn't funny. Bernanake is the same guy who came up with the idea of the 'saving glut'. That there was too much saving going on in other countries and the rampant spending of US consumers is good.
Econo-Girl is not eagerly looking forward to this guy's tenure.
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