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Originally Posted by sebastian_dangerfield
From 2003 to 2008, when a person would suggest that something was amiss in the housing market, almost every economist would say, "In the US, housing does not go down." Greenspan even suggested it.
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Some people said that. They did not know their history very well. The more sophisticated version of it, which underpinned the high ratings for MBSs, was that housing can go up and down but does not is not correlated across individual markets.
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A similar "law" I hear today from people with tons of money in the market who are skittish, and from economists, is "2008 was unique and cannot be repeated."
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Anyone saying this who isn't making the very narrow point that it won't happen exactly the same is a moron, and, again, ignorant of history.
You are finding some very dumb "economists" somewhere.
