Glenn Beck, caught making stuff up again, claimed that Paul Krugman missed the $8trillion housing bubble. In fact, Krugman was worried about the bubble as early as 2002. Fortunately for Beck, his audience probably won’t fact check him and assume he’s smarter than a Nobel Prize winner…

GLENN BECK: The unemployment rate is 19.2 percent now, and that’s not the worst place in America. And yet, at least a dozen of the same economic bean heads who missed the industry’s $8 trillion housing bubble — yeah, those guys — including our best bud, the 2008 Nobel Prize winner Paul Krugman — they’re now calling for a third stimulus.

PAUL KRUGMAN (2002): More and more people are using the B-word about the housing market. A recent analysis by Dean Baker, of the Center for Economic Policy Research, makes a particularly compelling case for a housing bubble. House prices have run well ahead of rents, suggesting that people are now buying houses for speculation rather than merely for shelter. And the explanations one hears for those high prices sound more and more like the rationalizations one heard for Nasdaq 5,000.

PAUL KRUGMAN (2005): That’s why it’s so ominous to see signs that America’s housing market, like the stock market at the end of the last decade, is approaching the final, feverish stages of a speculative bubble.

PAUL KRUGMAN (2005): I’ve written before about the reasons to believe that current house prices in much of the country represent a bubble. When that bubble begins to deflate, so will housing-related employment.

Original Story

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