Krugman on the US housing bubble

So when you even out the supply and demand: you STOP these bubbles from forming, and people can buy houses safely without worrying about foreclosures. The banks just love these bubbles because not only do they get to make money off of you when you borrow to buy the houses but they get to actually take your house from you and buy it back at a cheap price when it forecloses.

If you own a home and you think you are going to get rich? think again, because the next house you want to buy will be just as expensive, all houses increase at the same time. The price of your home increased half a million dollars in 5 years? So did all the others. The only people who really get rich are the big banks who lend out the money. See, when demand out-weighs supply: thats when these massive bubbles are formed. People need to understand that we need to even out the supply and demand.

the answer to the housing bubble may come as a surprise because you actually need to add more houses = make the cities bigger = no more bubble. I have to explain how the bubbles are formed to begin with. Supply and Demand: demand for the houses increases, which makes the prices go up. People who need to buy homes have no choice but to pay the RIDICULOUS money for these homes even if they can't afford them. The bubble pops, prices fall, scam artists get rich quick.

it could be pretty bad? its been a disaster and getting worse

@Turnedleaf

That analogy has a problem, because back then it wasn't groups of open-minded intellectuals who claimed the world was flat, they were actually the ones claiming otherwise, while the religious anti-intellectuals were the ones claiming so and threatened those who questioned any of their nonsensical dogma. Today, we don't have religious nuts threatening open scientific debate (in the western world). Simply put - submit and publish papers if you think you're so right.

I dont really want to get dragged into somekind of generalizing / stereotyping of religion (or your verson of history).

The analogy was not wrong, what was once a common fact (flat) is not the same fact (round) that we know today.

There are many arguments for both sides already, do you want a reading list ?

Relax, I'm not stereotyping all religion, but the fact is during those times, theocracies were prevalent and the few that were considered heretics by these theocracies were actually the ones who were right. Anyway, you're right, I'd rather not debate that. However, I am just saying that all these people on youtube that are so sure of themselves should start submitting papers to the economics community instead of sharing their opinions on youtube. Again, I am not criticizing anyone's views.

I assume that your talking about european veiws 500 years ago. (there is alot more than just europe even at that time)

Im looking for opinions (and information) to better hone my views. Debate itself is a tool of education.Not really learning anything from you except that everyone who has an opinion should be writing papers.

Maybe you should write a paper, on how everybody with an opinion should write papers .

You're incorrectly implying that I came in here attempting to explain to you how the economy should be run, and if you read through any of my posts they have nothing to do with that. I was simply addressing all the people that I see in every video involving economics saying "such and such is a moron, THIS is how the economy works". I've acknowledged I don't know enough about economics to make statements as arrogant. My only point is whoever is so arrogant to make those statements (cont.)

(cont.) should be able to come up with a landmark theory in the world of economics rather than bitch, for lack of better term, on youtube. And hey it doesn't even take a so-called "expert" with tons of experience in the field to change the world. One word: Einstein. He was only a patent clerk when he changed all the laws of physics. So all you youtube economists, get out there and make Krugman look like an idiot!