"More than 70% of U.S. consumers believe a national housing bubble will
burst and home prices will collapse within the next year, although 56%
believe it's unlikely to happen in the area where they live, according
a new survey."
Morrissey, Janet. 2006. "Consumers Expect Housing Bubble to Burst."
Wall Street Journal (20 April): p. D 3
The idea that governemnt is in the business of fooling people happens often.
but it fools them to the interests of the class it serves, and rational
expectation represents the view of those who think that people are not fooled
enough for the interets of more voracious section of the upper class. the only
decent thing about it is that when peoples' expectations tally with what market
equilibrium is, the consequences are completely ascoial and without any moral
preconceptions or implications. Recall that market equilibrium is a 'positive'
outcome in the pragamatic sense of the word, for the market could clear at a
price and quantity level that could easily wipe out a whole population and that
would still be pareto optimal, hence the absurdity of symbolic, asocial and
ahistorical reasoning.
--
Michael Perelman
Economics Department
California State University
Chico, CA 95929
Tel. 530-898-5321
E-Mail michael at ecst.csuchico.edu
michaelperelman.wordpress.com
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