Krugman on European Financial Suicide

[alice wellintown]

Robert Shiller: There’s no guarantee that home prices are going to go
up. I think we’ve gotten into an illusion about that. We got into an
illusion and it created this spectacular bubble. We have to reflect
now that we had a kind of crazy mind-set in the last couple of
decades, and we have to get back to thinking like people used to
think. Housing is a depreciating asset, goes out of style; it’s going
to end up in the wrong place. People will want to live somewhere else,
so it’s not any automatic capital gain.

Duncan:  “I think this represents a new economic system,” Duncan told
Marketwatch in a telephone interview from his office in Bangkok. “The
biggest impediment the world faces in overcoming this crisis is the
broadly held misconception that we are operating in a capitalist
system.”



Ask Spain if housing is an investment.