Remember some time ago, when people dug up old statements by Paul Krugman, from around 2001-2003, in which he said it would be good for the economy to blow up a housing bubble? Krugman and his supporters had all kinds of excuses for these statements. Why, I was only joking — this was one line Krugman tried to put forth, even though it was obviously a lie based on the context and the sheer number of times he called for artificial stimulus to housing.
Well, not long ago the great Danny Sanchez revisited the whole issue, and it turns out Krugman and his fans haven’t got a leg to stand on. You will find this interesting, I guarantee.