The Six Years Of Growth Under Bush Were An Illusion.
by
LeRoy_Was_Here
11/07/2008, 4:29 PM #
We are now belatedly discovering that the six years of growth under Bush were an illusion or a mirage, nearly all due to the housing bubble which was bound to implode at some point, and it has now decisively imploded. Fully 40% of the new jobs created between 2001 and 2006 were in the housing industry or related industries, such as the construction industry, the home mortgage industry, the home appraisal industry, etc. Those jobs are now disappearing at a rapid rate.
A few weeks ago, I almost fell out of my chair in shock and astonishment when I saw Alan Greenspam (deliberate misspelling) testify before Congress that 'no one' foresaw that we could have a national decline in home prices. What balderdash! What rot! What baloney! What poppycock! The fact is that we had several well-informed people doing their best to inform the public that the housing bubble was a mirage, and that it was bound to burst eventually, and that when it did, it would cause massive economic pain and dislocation. Among them: Robert Shiller, author of Irrational Exuberance, Nouriel Roubini of the Real Global Economy Monitor, John R. Talbott, author of The Coming Crash in the Housing Market (published in 2003!) and, well, yours truly, as I have been posting and blogging on these issues since 2002. Also The Economist magazine, which was publishing articles back in 2003 on "The Phony Recovery" and has been issuing studies of the global housing bubble almost throughout this decade.
The real problem is that the vast majority of people were simply not paying any attention. They were listening to the wrong people, the real estate 'economists' who were telling people that home prices would continue to go up and up and up and up, and all the various apologists for the Bush adminstration who were trumpeting how 'swell' the economy was doing, even while all the time America was lurching into larger and larger amounts of debt and leverage.
You really need to study the phenomenon of economic bubbles. They have dominated the world economy for the last few decades (the dot.com and stock market bubbles of the 1990s and the global housing bubble of this decade).
The 'growth' in the economy during this decade was nothing more than a gigantic financial bubble.