Dean Baker
Dean Baker
Dean Bakeris an American macroeconomist and co-founder of the Center for Economic and Policy Research, with Mark Weisbrot. He has been a senior economist at the Economic Policy Institute and an assistant professor of economics at Bucknell University. He has a Ph.D. in economics from the University of Michigan...
backed consuming dangerous dependent economy heard ourselves start
We've backed ourselves into a very dangerous situation. The economy is dependent on everyone consuming like crazy. If everyone heard my diatribe and said, 'Yeah, we better start saving,' the economy would go into a recession.
banking betting continue housing lose market people run turning unexpected
People are really stretched. They are banking on everything turning out right for them. That they won't lose their jobs, that they won't run into unexpected expenses. They're betting that the housing market will continue to appreciate.
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People are always trying to explain the lack of questions as saying there's a consensus around monetary policy, but there's anything but a consensus on monetary policy. What upsets me more than anything is no one is asking serious questions.
borrowing gas led money people pull willing
It does pull a lot of money out of people's pockets. Even if it doesn't go back up much, it translates to a 50-to-60-cents-a-gallon gas tax. But for the borrowing that people were willing to do, it probably would have led to recession.
chance energy growth interest jump negative percent spike
It could be a very big hit. I'd say there's a 10 to 15 percent chance of negative growth if we see a spike in interest rates, or a really big jump in energy prices.
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I think their intention is to get people who are loyal and that does raise problems. It's clear that they're looking at this as a sales position.
california economic home prices ripple suffered trouble
Hawaii's home prices suffered in the 1990s because of economic trouble in Japan, ... If home prices in California reverse, it will have ripple effects.
moved prices rent sale
Historically, rent prices and sale prices have moved together.
housing leading leaving money mortgage predict prices rule secondary surprise
I wouldn't necessarily predict this would be a trigger, but I wouldn't rule it out either. It wouldn't surprise me if you see money leaving the secondary mortgage market, leading housing prices to fall.
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Builders will keep building as long as they can keep getting these prices. But I think there's a glut developing clearly in some markets and that clearly will put downward pressure on prices.
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There is a large psychological element behind current housing prices,
courage fall few people rate
He was the one who had the courage to let the unemployment rate fall. Very few people thought the unemployment rate could fall that low.
bubble housing promoted
He consciously promoted the housing bubble as a way of boosting the economy.
air bubble imagine rates
Let's imagine rates go to 7 percent, I think that would take the air out of the bubble pretty quickly,