Dean Baker
Dean Baker
Dean Bakeris an American macroeconomist and co-founder of the Center for Economic and Policy Research, with Mark Weisbrot. He has been a senior economist at the Economic Policy Institute and an assistant professor of economics at Bucknell University. He has a Ph.D. in economics from the University of Michigan...
building home pace prices pushing showing until
We're building at a 2 million-a-year pace, which is more than demand, and we're going to keep building at that pace until home prices correct, ... It's already showing up in the rental market, oversupply is pushing down rental prices.
building homes increasing quarter seems
When you see it increasing quarter after quarter, there seems to be something going on here. We're building more homes than are being filled.
california economic home prices ripple suffered trouble
Hawaii's home prices suffered in the 1990s because of economic trouble in Japan, ... If home prices in California reverse, it will have ripple effects.
best creation gives growth home jobs level million next optimistic percent prices scenario year
The optimistic scenario gives you about 2 million jobs next year -- about 180,000 a month. If I had to make my best bet, I'd say we'll have level home prices and growth of about 1.5 percent for the year. There'll be job creation of about 80,000 or 90,000 a month.
home prices run
There has never been a run up in home prices like this.
bubble data home mortgage numbers sign since timely
These monthly numbers are very erratic. It can be that this is a sign (of the bubble bursting), but I would never make too much of one month's number. Especially since the other timely data we get, the mortgage applications for home purchases, have still been pretty high.
bubble bubbles decline home housing local looking maybe normally percent prices realistic specific talk talking
Normally when you talk about housing bubbles bursting, you're talking about a specific local market. But we've never had a nationwide run-up in home prices like this. I don't think it's realistic to think the decline won't also be national. I think a 15 percent nationwide decline is very plausible. In many bubble areas, could be looking at 20-25, maybe 30 percent declines.
home landlords position prices raise rates together
Home and rental prices will come back together by home prices falling. I don't think landlords will be in any position to raise rates too much.
exotic forcing home loans people prices room turn unorthodox
Home prices are going through the roof, forcing people to turn to exotic loans and unorthodox financing. These people have no room for error.
growth home knock level percentage prices
If home prices level off, that can knock down growth by 1 or 2 percentage points, from 3.5 percent to 1.5 percent.
banking betting continue housing lose market people run turning unexpected
People are really stretched. They are banking on everything turning out right for them. That they won't lose their jobs, that they won't run into unexpected expenses. They're betting that the housing market will continue to appreciate.
asking consensus explain lack monetary people questions saying serious trying upsets
People are always trying to explain the lack of questions as saying there's a consensus around monetary policy, but there's anything but a consensus on monetary policy. What upsets me more than anything is no one is asking serious questions.
borrowing gas led money people pull willing
It does pull a lot of money out of people's pockets. Even if it doesn't go back up much, it translates to a 50-to-60-cents-a-gallon gas tax. But for the borrowing that people were willing to do, it probably would have led to recession.
few gamble people problem recognize
The problem is that few people recognize it for the gamble that it is.