Can the propaganda get more outrageous? I normally consider the Wall Street Journal one step better than CNBC, but they have not gone into full bubble-cheerleader mode, as is evidenced in this headline: “There’s No Housing Bubble, but Places Like California Starting to Look Frothy.” Froth! That was exactly the kind of rhetoric used a few years ago to deny that a housing crash was on the way. As the Guardian recently recalled:
It was argued that financial innovation – manifested in the alphabet soup of derivatives and structured financial assets, such as MBS, CDO, and CDS – had vastly improved the ability of financial markets to “price” risk correctly, eliminating the possibility of irrational bubbles. On this belief, at the height of the US housing market bubble in 2005, both Alan Greenspan (the then chairman of the Federal Reserve Board) and Ben Bernanke (the then chairman of the Council of Economic Advisers to the President and later Greenspan’s successor) publicly denied the existence of a housing market bubble – perhaps except for some “froth” in a few localities, according to Greenspan.
Because it is hard to believe people could have misled us so badly, here is Benranke’s delusions on parade, including an agreement with Greenspan that, at most, there is “froth” in a few areas (at about 1:20).
These same people stayed in power from Bush to Obama without ever losing any credibility with our ruling class and the mainstream media! Even in the face of horrific unemployment and an even less sustainable bubble, the same lies are being spread through the media.
For a much better view, here is PJ Media:
The bottom line is that our economy is a wreck but some of the signs are hidden by the stock market, housing , and other bubbles that are directly stimulated by the Federal Reserve’s “quantitative easing” (i.e. massive creation of new fiat currency). But we all know the stock market bubble is merely nominal. A crash will wipe out those alleged gains in a day.
And the same is true of this new real estate bubble.